"As the Chinese economy develops and the urbanisation process continues over the next decade or so, the production and consumption of steel are likely to rise further, underpinning strong demand for both iron ore and coking coal."
Sunday, December 19, 2010
Will China's demand for Australian iron ore and coal continue to grow?
The third RBA Bulletin articles studies the path and structure of China's demand for steel. It is very interesting and worth a read for anyone who wants to know where Australia's economy is heading (insofar as we are tied to the Middle Kingdom). My favourite chart is the one enclosed below, which shows that China and India's appetite for steel has a long way to go. The authors conclude:
"As the Chinese economy develops and the urbanisation process continues over the next decade or so, the production and consumption of steel are likely to rise further, underpinning strong demand for both iron ore and coking coal."
"As the Chinese economy develops and the urbanisation process continues over the next decade or so, the production and consumption of steel are likely to rise further, underpinning strong demand for both iron ore and coking coal."
