Reuters reported that Cliffs Natural Resources believes that China will increase its steel production this year boosting demand for raw materials like iron ore and coking coal the company's two major products.

Mr Joseph Carrabba CEO of Cliffs said that "We believe the world's emerging economies will continue to urbanize and as a direct result will continue their need to produce record amounts of steel.”

He believes that China's monetary policy is likely to ease and that the nation's growth, already strong by Western standards will continue.”

Mr Carrabba said that "In China we anticipate crude steel production to reach 730 million tonnes in 2012. This 7% increase from 2011, coupled with a steadily improving outlook for the US economy, will continue to support demand for steel making raw materials."

(Sourced from Reuters)