Author: Paul Ploumis13 Oct 2014 Last updated at 06:15:17 GMT
CANBERRA (Scrap Monster): Albert Calderon, while attending an interview in New York, further stated that, the declining of production of iron ore would only turn back to profit another company, and their increase in production.
But it should also be remembered that, if all these big producers, continue their race to become the top, it would only lead to the end of the race at the bottom most, leading loss of all. According to estimations, by the next two years, there will supply of over 250 million tonnes to the demand.
Ivan Glasenberg, the Chief executive of Rio Tinto, recently, have tried to fix a deal with Rio Tinto, for which the CEO of the company contacted Rio Tionto, but the firm rejected the deal. Calderon, was the latest tool of BHP Billiton in approaching a now failed project with Rio Tinto, which was a mega merger project. He further stated that, as the iron ore industry is now going through a phase of supply over demand, it is the buyer who has the key importance rather than the producer.
The recent data show that, the price of iron ore is at five years low, at 80 dollars per tonne. The supplies from the iron ore giants are increasing to a great extend where as the China’s, the biggest importer of the commodity, is slopping in their demand of iron ore.
Calderon, stated that, he doesn’t understand the logic in Glencore merging up with Rio Tinto, when the merger is equal with no premium, it would make sense to the shareholders of Glencore, but not to Rio Tinto, with much larger assets.