Rio Tinto chief expects Chinese steel demand to double

Mar. 23, 2010 - The head of Rio Tinto's iron ore operations says he expects demand for steel in China to double in the next 10 years.
Sam Walshe was speaking at an iron ore and steel conference in Perth today.
Mr Walshe also predicted exports to India of iron ore, the key ingredient in steel, to triple within the same time frame.
He wouldn't answer any questions on iron ore price negotiations, other than to say Rio Tinto supports a benchmark system whereby prices are set on an annual contract basis.
However, he did indicate he believes that system needs to evolve to perhaps a quarterly rather than annual negotiation.
The current benchmark price for iron ore is about $60 per tonne, but it sells on the spot market for up to $140 per tonne.
Mr Walshe spoke briefly about the proposed merger of Rio Tinto and BHP's iron ore operations in the Pilbara, which is facing national and international regulatory hurdles.
He says the time frame for sealing the deal will likely blow out from mid-year to year's end.
The merger of some operations between the two mining behemoths is expected to save around $10 billion.