Mikemennell,Where oh where did this come...

Mikemennell,

Where oh where did this come from?

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IO price (all contracts in US$) will peak in 2009 then stabilise for say 2 years and then decline steadily to 2005/6 prices which at US$50/ton are half the current price.
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Mikemennell,

I would suggest this is more to the point of where I/O pricing is heading.

Source: Southern Cross Equities

"Preparing for China's Urban Billion" by The McKinsey Global Institute (McKinsey & Company's economics research arm)

China's urbanisation will lead to the following.

350 million: will be added to China's urban population by 2025- more than the population of today's United States.

1 billion; people who will live in China's cities by 2030

221; Chinese cities will have one million + plus people living in them- Europe has 35 today

5 billion; square meters of road will be paved

170; mass transit systems will be built

40 billion; square meters of floor space will be built- in five million buildings.

All up, i would say that should keep the I/O market very busy for years to come with high prices.

Have not included India - UAE.

Oh yes, forgot to mention, the Chinese will want to furnish the 5 million buildings and will want new white goods - new cars and the list goes on.

Have a read of some BHP reports to get a real handle on what's going on.

Cheers markco2