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STOCKHOLM, June 25 (Reuters) - Mining company Vale sees the global sea-borne iron ore market growing to 1.81 billion tonnes by 2020 from 1.23 billion tonnes last year, Fidel Blanco, Vale’s managing director of Europe and North America iron ore sales, said on Wednesday.
“We see iron ore sea-borne capacity increasing to 1.8 billion tonnes by 2020,” Blanco told the Metal Bulletin 20th international iron ore symposium in Stockholm.
“We have taken into account projects from high cost producers that probably will not materialise because of what’s happening to iron ore prices.”
He added, however, that Vale would continue to increase output no matter what the price, because of its low cost curve: “No matter what the weather we can face it.”
Vale said previously it is on course to increase annual iron ore output to 450 million tonnes per year by 2018 from 306 million tonnes last year.
Iron ore prices have fallen some 30 percent this year to around $90 a tonne as supply has swelled while the economic growth rate in China, the world’s top iron ore consumer, has slowed.
The drop is putting high cost junior iron ore miners, especially in China, under huge pressure, with many expected to shut shop. (Reporting by Maytaal Angel; editing by Susan Thomas)