Melbourne — BHP Billiton, the world’s biggest miner, expects soaring prices of iron ore and coking coal to moderate even as China pushes ahead with efforts to restructure its steel sector. Prices had been supported in recent months by restocking and short-term supply disruptions, CEO Andrew Mackenzie told reporters on Thursday in Brisbane following the company’s annual meeting. The price of iron ore has jumped 66% in 2016 to rebound from three consecutive annual declines, while coking coal has surged about 295%. China’s determination to push through with restructuring in its steel and coal sectors and the nation’s increasing willingness to favour imports over domestic material have buoyed prices alongside other short-term catalysts, according to Mackenzie. "The reality is that once some things go through, unless we see more supply disruptions, the market fundamentals would suggest some of those current numbers will drift back," he said. Oil and natural gas were better placed to deli...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.