China's growth fuels increasing competition for raw materials

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

2 Sep 2010

China's hunger for mineral resources has grown with its rise to become the world's second-largest economy. Today, the China factor is playing an increasing role on all raw materials markets Never before has China invested so many billions of dollars to ensure that the demands of its manufacturers and consumers are met, but in their buying sprees around the world, state-owned Chinese businesses are also meeting with resistance.
China already uses twice as much steel as the United States, Europe and Japan combined, and the sheer scale and speed of the country's economic growth will see its demand for resources rise for decades to come.
After annual economic growth of about 10 percent since 2000, China should see growth of 7 to 8 percent or even more in the coming decade, experts predicted.
“It means continuing per-capita increases in the consumption of iron ore, copper, aluminum and other minerals,” said Tom Albanese, chief executive of the Anglo-Australian mining business Rio Tinto Group, during his most recent visit to Shanghai.
Urbanization in China is set to produce more than 200 cities of over 1 million people by 2025 — in contrast to 35 in Europe today.
Those new city dwellers will need flats and houses and more transport infrastructure. More cars are already being sold in China than in any other country.
Increasing demand for metals is guaranteed “for the next 20 to 30 years,” Albanese said. “China remains central to Rio Tinto's success.”

Source: China Post