SYDNEY, Oct 15 (Reuters) - Australia’s Fortescue Metals Group said on Thursday seaborne iron ore sales into China were clearly improving, and iron ore prices would increasingly be driven by demand rather than supply.
“All eyes are on China at the moment to see what the Chinese government will do in terms of economic stimulus. That will determine steel demand and in turn demand for iron ore going forward,” Chief Executive Nev Power told a conference call.
Fortescue, the world’s fourth-biggest iron ore miner, earlier on Thursday unveiled a bigger-than-expected drop in cash production costs over the September quarter to $16.90 a tonne against a fiscal 2016 target of $18. (Reporting by James Regan; Editing by Ed Davies)