China’s iron ore demand not an issue for next decade, Agnelli says

Iron ore demand in the Chinese market will not be an issue for the next 10 years, former Vale ceo Roger Agnelli said on Thursday July 12 during a press conference in São Paulo, Brazil.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

“We are currently experiencing a market adjustment on the back of the commissioning of new mining capacities, which is normal for the long iron ore cycle,” he said.

He believes the current market slowdown reflects a financial crisis, mainly in Europe, and not a crunch in the mineral resources sector.

Agnelli is now chairman of B&A Mineração, a joint venture between his investment firm AGN Participações and Brazilian investment bank BTG Pactual with a focus on developing iron ore, copper and fertiliser projects in Latin America and Africa.

He sees a growing demand for iron ore in the near-term, driven not only by China, but also by other Asian countries and emerging economies.

Asia will strongly invest in infrastructure projects in the coming years as part of its urbanisation process, while emerging countries will continue to have a healthy demand for mineral resources to keep their growth pace, he said.

“Around 10,000 new cities will be built by 2050,” he added.

Agnelli left Vale in 2011 after serving 10 years as its ceo.

What to read next
The US government will impose tariffs on steel and aluminium shipped from Mexico that were made elsewhere, in a bid to curb trans-shipment and excess production, the White House said in a statement on Wednesday July 10, a move widely applauded by the pair of metals industries
Norway-based aluminium producer Hydro and German car manufacturer Porsche signed a long-term agreement on Tuesday July 9 for supply of low-carbon aluminium to further decarbonize the supply chain of Porsche’s sports cars. The agreement follows the letter of intent signed in April
The Indonesian government is looking to ease its export ban on bauxite, sources familiar with the matter have told Fastmarkets
Price and supply were the major topics of conversation for market participants across the value chain attending Fastmarkets’ flagship Lithium Supply and Battery Raw Materials conference in Las Vegas on June 24-27
Russia's war against Ukraine is using millions of copper-containing shells, which has increased demand for the red metal, sources told Fastmarkets
A new incentive program for companies with large investments in Argentina might unlock the country’s mining potential in the medium term, market participants recently told Fastmarkets