higher io prices for 2011

If only the clowns can get production steady at 500,000 tons per quarter. They are surely paid enough to do that. They seem preoccupied with getting their perfomance bonuses even though they aren't performing.

At least higher IO prices will help overcome the above.

Higher iron ore prices on the way up
David Pett November 2, 2010 1:08 pm

Iron ore prices will strengthen in 2011, says John Redstone, an analyst at Desjardins Securities.

Recently, there have been calls from within India to restrict or eliminate iron ore exports because of demand from domestic steel mills, Mr. Redstone said in a note to clients, adding that India privides roughly 11% to 12% of the total exported material.

The analyst said there are reports that stockpiles of iron ore in China are being drawn down as shipments from India have declined.

While there are numerous iron ore projects in the works that could potentially boost supply to offset demand, Mr. Redstone said only a few are economic and most of them are still at least five years away from full production.

In our analysis we estimate 694 million tonnes of incremental production could be added by 2017, the analyst wrote.

However, the growth in incremental demand would still be greater by over 50 million tonnes. In addition, demand would continue to grow next year with no supply-side response.