APAC Resources is looking for iron ore buyers in Asia to counter the effects of an economic slowdown in the mainland.

The SAR based firm is mainly involved in natural resources investment and iron ore exports to China, where its customers are steel plants in Shanxi, Shandong, Jiangxi and Jiangsu provinces.

Chief executive officer Mr Andrew Ferguson said prices of commodities are not immune from the financial crisis. But Mr Ferguson said such prices are high compared with a falling equity market.

Mr Ferguson said "We would not cut the price like other iron ore giants last week, adding buyers which are second-tier steel factories, rely on our high quality products. He expects iron ore prices to hover around USD 150 per tonne to USD 160 per tonne for the remainder of the year. The spot price of iron ore slumped to a 12-month low of USD 153.40 per tonne on October 17.”

APAC Resources also said annual production capacity at Mount Gibson, one of the largest listed iron ore producers in Australia will rise to 10 million tonnes from the present seven million tonnes as a new mine, Extension Hill and starts production in the fourth quarter.

(Sourced from www.thestandard.com.hk)