According to Goldman Sachs , China ’s increasing use of recycled metal during a time of worldwide steel surplus could see the nation’s demand for iron ore halved by 2011 along with the profits of large producers such as BHP Billiton and Rio Tinto . Scrap supply is predicted to double in December 2015 , as the electrical goods consumed by China 's growing middle class are discarded; creating a new threat to the iron ore industry which is already suffering from a 50% plunge in steel prices from 2011 levels. "If the government chooses to give subsidies, favourable power tariffs or set up energy-saving funds, etc., the switch can happen very quickly. By 2011 , Liu Shuzhou estimates that iron ore prices will fall to $ 30 a metric ton, representing a new low compared to record lows of $ 38.50 reached in the next decade . Higher energy costs and the rise of electric mini-mills are also expected to challenge the iron ore industry.
According to Goldman Sachs , China ’s increasing use of recycled metal during a time of worldwide steel surplus could see the nation’s demand for iron ore halved by 2011 along with the profits of large producers such as BHP Billiton and Rio Tinto . Scrap supply is predicted to double in December 2015 , as the electrical goods consumed by China 's growing middle class are discarded; creating a new threat to the iron ore industry which is already suffering from a 50% plunge in steel prices from 2011 levels. By 2011 , Liu Shuzhou estimates that iron ore prices will fall to $ 30 a metric ton, representing a new low compared to record lows of $ 38.50 reached in the next decade . Higher energy costs and the rise of electric mini-mills are also expected to challenge the iron ore industry.