China economic restructuring has cut demand for steel, iron ore -Fortescue
MELBOURNE, Sept 23 (Reuters) - A restructuring in China's economy has reduced business confidence and demand for steel and iron ore in the world's top consumer of both commodities, said Nev Power, chief executive of Australian miner Fortescue Metals Group.
"With the restructuring that's going on in the Chinese economy, it has reduced business confidence to some extent and we're seeing less demand for steel and therefore iron ore through that process," Power said on the sidelines of a mining conference in Melbourne.
Power also said that while a slump in iron ore prices this year has pushed out some high-cost producers from the market, supply is "not being cut back fast enough to reduce the overhang in the market."
Fortescue is the world's fourth-biggest producer of iron ore. (Reporting by Melanie Burton; Writing by Manolo Serapio Jr.; Editing by Richard Pullin)
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