IMO UMC do not need to sell out on a low ball bid....
And perhaps in 2 years time will be remembered as the biggest loser going out to the biggest mining company.
Iron ore prices on the rise iron ore stocks SP on the rise
To go out in 2009 at a low price would give you a pass to the biggest loser club.
Rio Tinto to raise the production estimation for 2009 Published: 14 Oct 2009 17:32:41 PST
October 14 MetalBiz--Analysts claimed on October 13 that Rio Tinto, the world's second-largest iron ore manufacturer would increase its production estimation for 2009 by 7% at most to respond to the improvement of steel producers.
The company's production report for the Q3 will be released on October 14, probably containing the rising of estimated iron ore production by 14mln tons, and the output was estimated to 200mln tons on June 16.
In 2009, Rio Tinto was forced to accept the price cut of 33%-44% and the shipment may decline, due to a sharp slowdown of the global demand growth, but the current situation seems to be temporary.
The price negotiation between miners and steel mills on shipment of 2010-2011 will begin on October 14. Analysts believed that the price may boost by 15% maximum because of the production increase of the steel mills.
Fortescue Metals Group, Australia's iron ore miner smaller than Rio Tinto announced its production in Q3 would rise by 20% and BHP Billiton also estimated to see a rising production when released the report on October 21.
The data from World Steel Association indicated that the annual rate of global steel production was 1.278bln tons in August of 2009, up 26% over the low level in December of 2008. Analysts forecasted the data for September to be released in late October would present a year-on-year growth.
UMC Price at posting:
91.0¢ Sentiment: Hold Disclosure: Held
