I/O Price, page-3

Will mngt have another excuse to avoid production while they work "tirelessly"
With regard to I/O price this is a period were price drops due to lower purchases brought about by Chinese NY.
Lets hope it keeps going.


Iron ore lifts above $US43

• Elizabeth Redman
• 1 hour ago

• Markets

The iron ore price has lifted overnight as a report predicted production growth would slow sharply over the next four years.
Overnight, the iron ore price rose 1.4 per cent to $US43.10 per tonne. The commodity has gained or held steady for each of the past five sessions.
The pace of growth in global iron ore production is likely to shrink, even though major miners continue to increase their output, according to research from Fitch-owned BMI, reported by Bloomberg.
Production will increase at an average annual rate of 0.3 per cent from this year until 2020, down from average annual growth of 4 per cent from 2011 to 2015, BMI said.
The research house expects major miners such as Australia’s BHP Billiton and Rio Tinto, as well as Brazil’s Vale, to keep producing more ore.


But production in China will fall, shrinking an average 4 per cent annually until 2020, BMI said.
As China slows, the iron ore market has been oversupplied, putting pressure on prices. Although many analysts expect some supply to leave and the market to come back to balance in time, some smaller producers have been able to maintain operations for longer than observers thought.
http://www.businessspectator.com.au/news/2016/2/3/markets/iron-ore-lifts-above-us43