“THIS is a cycle of prosperity much longer than we previously imagined,” Brazilian giant Companhia Vale do Rio Doce financial chief Fabio Barbosa said about China’s impact on the iron ore business.
His comments could well be applied to resource plays on the Australian stock market, which continued their recovery today.
Speaking in Sao Paolo to financial analysts about China's rising appetite for iron ore, Barbosa said shortages in the commodity were feasible this year should Chinese growth continue as it has done, according to news reports.
"It's not obvious that this is going to end in 2009 or even 2010. We don't have that view. This is a cycle of prosperity much longer than we previously imagined," he added.
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AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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