Australia: China's Demands for Iron Ore will Enlarge in the Short Term
On Tuesday, an assessment repot of Australia Treasury Department points that, China's demands for iron ore will enlarge in the short term. In the medium term and long term, these demands will continue enlarge.
This department also says, although European's demands for iron ore is going to be lower than the normal level for some time, China's demands for iron ore will enlarge in the short term, for the steel plants need to replenish stock..
Normally, the global steel market is weak in the later period of every year. However, the situation of this year is enlarged because of the large scale reduction of steel plant's output in Europe market, the global credit tension and China's tight monetary policy.
By June the 30th of 2011, Austria's export amount of iron ore is AUD 58 billions in all, and takes up 20% of its total export value and more than 4% of its GDP.
This department also says that, although the recent global financial market is instability, the economic growth prospect of newly emerging Asian countries, especially China, is robust. That will support Austria's iron ore export in the long term.
