Energy Iron ore supply growth to outweigh demand growth – BHP

Iron ore supply growth to outweigh demand growth – BHP

BHP Billiton.
BHP Billiton.

BHP Billiton on Tuesday warned of a continued oversupply in global iron ore markets in coming years that would keep up pressure on smaller suppliers to the global sea-traded market.

“Supply growth will continue to outpace demand growth over the next few years,” Edgar Basto, asset president for BHP’s iron ore division said in a prepared address to an iron ore conference in Perth, Australia.

“Incremental lower cost seaborne production will continue to displace higher cost supply… with smaller junior seaborne producers remaining under pressure,” he said.