Transcription of Finance News Network Interview with Fortescue Metals Group Limited’s (ASX:FMG) CEO Nev Power. Hello I’m Anastasia Mangafas reporting for the Finance News Network. I’m here at the Sydney Mining Club. I was joined earlier today by Fortescue Metals Group Limited’s
(ASX:FMG) CEO Nev Power, who gave us an update on the company.
Anastasia Mangafas:Nev Power, thanks for speaking to FNN today. Obviously the hot topic at the moment is the spot iron ore price which has fallen below $US100 per tonne. What is Fortescue’s forecast for prices for the remainder of the year to the first half of 2013?
Nev Power: While we are seeing very low iron ore prices at the moment, we expect them to rebound in the short term back to above $US120 a tonne, Fundamentally nothing has changed in the supply of iron ore, so there is no new supply that has come into the market, so with demand returning to normal levels we’d expect to see it back at $US120 a tonne very soon and remain in that range for all of 2013.
Anastasia Mangafas: Now, you’ve expressed confidence in the Chinese economy, where do you see demand from China being driven from – the domestic or export markets, in the next 12 to 24 months?
Nev Power: We see it predominately coming from the domestic market with the continued urbanisation and infrastructure build, particularly as China urbanises and continues to modernise its economy through the central and western provinces. The export market will always be an important market, but for China we see that as more about manufactured goods than steel itself so predominately the steel demand will come from domestic.
Anastasia Mangafas: And last question, How does the granting of a fifth berth at Port Hedland impact your export capacity?
Nev Power: The fifth berth gives us the flexibility, the productivity and efficiency to run not only our port operations but help the whole of the port operations run more efficiently. The fifth berth provides a lay-by berth for our ship loader there so that we get the maximum efficiency out of the port.
Anastasia Mangafas: Thank you for your time.
Nev Power: Thanks Anastasia.
