china iron ore spot market goes weak, page-6

Goldman' are confident!!

2336 GMT [Dow Jones] Goldman Sachs JBWere says contract iron ore prices can post a
seventh consecutive increase in the next round of negotiations. GSJBW is forecasting an
18%-plus increase in contract prices for Australian iron ore fines in the upcoming
negotiations. Says that, despite a drop in steel prices and spot iron ore prices, the
supply/demand dynamics for high quality seaborne iron ore are sufficiently robust to
justify another price rise. "We also believe that Australian suppliers are well
positioned over the medium term to gain a bigger share of the fast growing Chinese import
market for iron ore - a powerful combination of price and volume gains," GSJBW says.
Another increase in iron ore prices would boost the big Australian producers, BHP
(BHP.AU) and Rio (RIO.AU) as well as Fortescue Metals (FMG.AU) Mount Gibson (MGX.AU).
(APW)

Contact us in Singapore. 65 64154 140;
[email protected]