Demand from China for raw materials, including iron-ore, has resulted in a significant uptake in demand for seaborne iron-ore, says international commodities reference prices expert company The Steel Index manager Tim Hard. 
The supply of iron-ore to meet this demand will be one of the focus areas at the 2010 Mining Indaba, in Cape Town.

He adds that the discussion around iron-ore will be enhanced by the latest developments in the industry, such as diversified miner Anglo American aiming to increase its iron-ore production and mining group Xstrata announcing, towards the end of 2009, that it is examining its first entry into the iron-ore sector by funding an exploration project in the Republic of Congo.

Hard says that, globally, steel is the second-most significant trade commodity, with oil being the most significant, and China has been noted as the world’s largest spot market for the raw material, iron-ore.

The Steel Index MD Steven Randall will be speaking at the 2010 Mining Indaba on the topic of Africa’s iron-ore resources. Hard says that the company expects increased demand for raw materials from the southern hemisphere, including sub-Saharan Africa, and from the East, outside of China.
He adds that these regions are expected to see increased growth as a result of this demand. 
Randall’s presentation will focus on the domestic supply-side response for iron-ore from China, as well as the increased international interest in African developments from multinational companies.

Hard says that that there has been a decline in the mining industry during the downturn and that the current economic situation has to be managed carefully, but the long-term outlook is positive.

He cautions that, once the economic situation recovers, and mining companies in the West return to previous levels of demand, there is likely to be a staggered supply-side response as a result of exploration and capital expenditure limits during the downturn.

Hard adds that, while the industry is hopeful that the situation will recover, the mining industry is aware that a current challenge could be the weakness in demand in Europe and a potentially slow recovery in the US. He adds, however, that continued demand from the South and the East is contributing to stability in the mining industry.

The Steel Index is an independent global service company that provides verifiable daily iron-ore reference prices and weekly steel reference prices based on actual transactions. 
The company’s iron-ore reference prices are used by the Singapore Exchange and the London Clearing House, an independent clearing house serving major international exchanges and platforms, which, Hard says, allows miners, traders and steel producers to hedge their price risk.

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