The high import price of minerals on the one hand squeezed the profits of steel companies, but on the other hand gave the mining giants the power to expand production. Yesterday, the reporter was informed that Australia's three major mining giants Rio Tinto, BHP Billiton and FMG announced the iron ore output in the fourth quarter of 2011, respectively. According to this statistics, the annual output reached a record high. At the same time, according to the previous Brazilian Vale executives, the company is expected to produce 311 million tons of iron ore in 2011, mainly to meet the growth of demand in Asia. Not only that, Rio Tinto expects iron ore production to rise sharply in 2013-2015 due to the ongoing expansion of the Pilbara iron ore project in Australia. FMG is also investing 8.4 billion US dollars to expand the iron ore project. By 2013, the output will increase to 155 million tons, and will further increase to 355 million tons by mid-2017. Other major mining giants have also been stimulated by the huge profits brought about by high mining prices, and they are trying to expand production. Industry analysts believe that the import price has started to fluctuate since the fourth quarter of last year, and is currently around $130 per ton, but it still belongs to high level. This shows that mine expansion is not a bad thing. In the future, with the rapid expansion of international mining giants, the supply of iron ore will continue to increase, so after a few years, the supply and demand relationship in the market will change.
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