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Hi! All

Good news for Junior Minors like Sundance. Iron Ore price will remain over $100 for next 5 years predicted by Barclays.

Iron ore to stay above USD 100 for next five years - Barclays
Friday, 03 Dec 2010
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Barclays Capital said that iron ore spot prices will probably remain above USD 100 a tonne for the next five years on Chinese demand and project delays.

Mr Leonardo Correa Barclays Capital analysts said that the seaborne iron ore market will have a supply deficit of 23 million tonnes in 2011 and 9 million tonnes in 2012. The analysts increased their price forecast to USD 160 per tonne next year, from USD 140, citing overly optimistic estimates on the amount of potential new supplies.

The analyst said that several iron ore projects face difficulty delivering growth, including Anglo American Plc?s Minas Rio project in Brazil and Vale?s expansion of the Carajas mine, also in Brazil, which may be delayed by around two years on a slower environmental permitting process.

The analysts added that ?Markets will likely remain critically tight for the next three years, at least.?

It said that ?While political risks seem to be rising, we expect strong fundamentals and growth opportunities to remain the main value drivers.?

http://www.steelguru.com/raw_material_news/Iron_ore_to_stay_above_USD_100_for_next_five_years_-_Barclays/178771.html

(Sourced from Bloomberg)