MELBOURNE (Reuters) – Fortescue Metals Group Chief Executive Elizabeth Gaines said on Thursday that Beijing’s blue sky policy ahead of the winter Olympics early next year could extend volatility in the iron ore market.
Speaking on a call to media, Gaines said: “We are all aware there is a general determination from Beijing to ensure blue skies and … expectations are that we could continue to see some continued volatility as a result from that.”
However, there has been no indication of changes to long term contracts by customers, Gaines added.
Iron ore prices are down nearly 50% from record highs reached in May.
During a previous blue sky policy, Beijing has curtailed steel making to help ease air pollution.
(Reporting by Melanie Burton; Editing by Himani Sarkar)