Rio Tinto, the second-biggest iron ore exporter in the world, expects Chinese annual steel production will increase by around 30% to reach to 1 billion tons within the next two decades.
Rio Tinto's chief economist Vivek Tulpule said that this forecast is based on China growing at a slow phase, but it is still a pretty powerful number. Also, the steel scrap plays an increasingly more important role but iron ore is still the dominant material, said Vivek Tulpule.
Besides, he thinks China's move to shift to a consumption-led economy would reduce the share of steel demand for construction sector to 38% by 2030 from 53% in 2010, and demand from industrial sector will account 41% of the total by 2030 from 36% in 2010.
Iron ore accounted for 43% of Rio Tinto's revenue in the H1 this year, aluminum took 2nd place by 17% and copper at 11%. The company expects the iron ore output this year is about 25 million tons.