Metalloinvest said Thursday that economic recovery in Europe would raise demand in the second half, while a stronger yuan will buoy prices longer term by increasing purchasing power in China.
“Economic improvement in Europe will boost demand and prices in the second half, while a slowdown in Chinese growth to as low as 8 percent this year won’t significantly affect demand,” chief executive Eduard Potapov said. “Strengthening of the Chinese currency, along with improvement in developed economies, will support iron-ore prices in the medium term.”
Metalloinvest, the world’s fourth-largest producer of iron ore, plans to boost output 20 percent this year as it focuses on expansion in Russia, Potapov said in June. The closely held company slashed sales 49 percent to $4.8 billion last year, according to a Moody’s Investors Service estimate on July 30.
“In the medium term, potential consolidation of Chinese customers and China’s investments in iron-ore mines abroad may have a negative effect on prices,” Potapov said Thursday.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
