Comforting words from MY.....Source - AAP(www.steelguru.com)BC...

Comforting words from MY.....

Source - AAP

(www.steelguru.com)

BC Iron expects rebound in iron ore prices

- 06 Sep 2012

AAP reported that the head of junior iron ore miner BC Iron said that China's demand for the steel-making commodity will pick up again under the country's next head of government.

BC Iron operates an iron ore joint venture in Western Australia's Pilbara region with Fortescue Metals Group.

Slowing demand from China has led to iron ore prices falling sharply in recent weeks, sparking concern about future investments in the economically important sector.

Fortescue on Tuesday announced a cut to its spending on expansion of another project, in response to uncertainty about future iron ore prices.

Iron ore spot prices have dropped by 50% from the record levels of about USD 180 a tonne in the first half of calendar 2011, and have fallen by 30% over the past two months.

Releasing BC Iron's full year results, Mr Mike Young managing director acknowledged the falling price "has everyone a little nervous at the moment.” He said that "My view is that very little is being said of the effect of the leadership transition in China going on right now.”

He added that "I expect that, following the election of China's next premier Li Kequiang, you will see a loosening of monetary policy and systematic stimulus. It is no secret that China wants slower but sustainable growth, going forward."