IO price (all contracts in US$) will peak in 2009 then stabilise for say 2 years and then decline steadily to 2005/6 prices which at US$50/ton are half the current price. ------------------------------------------------------------ Mikemennell,
I would suggest this is more to the point of where I/O pricing is heading.
Source: Southern Cross Equities
"Preparing for China's Urban Billion" by The McKinsey Global Institute (McKinsey & Company's economics research arm)
China's urbanisation will lead to the following.
350 million: will be added to China's urban population by 2025- more than the population of today's United States.
1 billion; people who will live in China's cities by 2030
221; Chinese cities will have one million + plus people living in them- Europe has 35 today
5 billion; square meters of road will be paved
170; mass transit systems will be built
40 billion; square meters of floor space will be built- in five million buildings.
All up, i would say that should keep the I/O market very busy for years to come with high prices.
Have not included India - UAE.
Oh yes, forgot to mention, the Chinese will want to furnish the 5 million buildings and will want new white goods - new cars and the list goes on.
Have a read of some BHP reports to get a real handle on what's going on.
Cheers markco2
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