Robe targets more of China

ROBE River Associates, part of the North Limited group, is targeting an increased share of the market in China.

A Robe report said China continues to have the greatest growth potential for the Pilbara iron ore producer.

In China the domestic demand for steel is relatively strong. However, exports from China are down due to global oversupply and the economy is still feeling effects of the Asian crisis.

The Robe report said sales to China over the past twelve months have been consistent and, as the Chinese economy evolves, so does the structure of the Chinese steel producers, providing Robe with new sales opportunities in the future.

New customers included Glencore, Prosperity Merchandise and Sinotrans.

Robe’s marketing strategy to promote and increase sales of lump ore to customers in Japan and Europe over the past year has resulted in substantial increases in sales to both markets, particularly Japan.

Following trial shipments in 1998, Kawasaki Steel is now a major lump customer, with shipments also to Nippon Steel and NKK.

In the 1998-99 financial year Robe shipped just under thirty million tonnes of iron ore to its overseas markets.

The company report said, while the global steel industry has been in a state of oversupply, demand for steel is showing signs of improving as are “the economies of the countries in which Robe has customers”.


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