"Iron Ore demand will be strong but supply will explode. Prices expected to deline from 2010 on."
People have been forecasting IO prices to come off for a few years now. Problem is that its an infrastructure business. Rio and BHP have been working on ramping up for the past 3/4 yrs but it takes time and progress is slow. Especially when you're expanding rail/port ops and trying to run them at full pace at the same time.
FMG may get a jump here as they can build Xmas creek and the rail spur with no impact on current ops. Still will have issue expanding the port.
China will be loving this, having the world focus on them for the olympics at the same time ramming it down their throats how much we need them buying everyones commodities.
And the fundies also as they exploit the short side, they'll probably close their shorts and go long before the end of the games. Then the media commentators will change their tune and start talking it up again a week or two later. Oh dear, I'm becoming cynical....haha.
UMC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
