COLUMN-Global iron ore miners can still win as China demand slows: Clyde Russell
--Clyde Russell is a Reuters columnist. The views expressed are his own.--
By Clyde Russell
LAUNCESTON, Australia, May 13 (Reuters) - Can Chinese steelmakers and global iron ore miners both be right about the future, even though they appear diametrically opposed?
The Chinese steel industry says it has stopped expanding and is facing major problems amid a slowing economy.
Global iron ore miners are boosting seaborne supplies of the steelmaking ingredient by about 20 percent over the next two years and believe China will buy most of the extra cargoes.
It appears that both steelmakers and miners can't be right, but as counterintuitive as it sounds, steel capacity can stop increasing even as iron ore imports experience robust growth.
Take the Chinese steel industry first.
"Companies are no longer expanding capacity," Wang Xiaoqi, vice president of the China Iron and Steel Association (CISA) told an industry conference in Singapore last week. Continuación...