TOKYO, Sept 24 (Reuters) - The head of JFE Steel, Japan’s No.2 steelmaker, said on Wednesday that he expected the weakness in iron ore markets to continue for another half-year due to weaker demand in China and abundant supply.
“I don’t expect any major change in the iron ore market for the next half-year,” said Eiji Hayashida, president of JFE Steel, a unit of JFE Holdings Inc.
“The only thing that could change the situation would be natural factors. If the supply of iron ore in Australia gets affected by heavy rain in the January-March period, that could help boost the price of iron ore.”
Asked whether the company plans to change the way it procures the raw material or to increase stockpiles to take advantage of weaker prices, Hayashida said: “No, we will buy raw materials when we need them and for how much we need them.” (Reporting by Yuka Obayashi)