increase in iron ore price

Chinese demand for Iron ore especially magnetite with it,s
more environmently friendly characteristics should see a few of our lesser lights start to move,I believe that BRD could be one of those. I,d be interested to hear of any more apart from GBG which I hold.

=DJ 2010 Iron Ore Prices To Rise 20%; China Demand A Driver-UBS

2009-12-01 08:43



By Chuin-Wei Yap

Of DOW JONES NEWSWIRES



BEIJING (Dow Jones)--Benchmark iron ore prices for 2010 are expected to rise 20% from this year, driven by the strength of Chinese steel output, a UBS forecast said Tuesday.

"UBS is very confident China's steel consumption will remain strong on sustained loan growth with lending of more than CNY7 trillion in 2010 and lingering benefits from CNY10 trillion (lent) in 2009," said Andrew Snowdowne, the bank's steel analyst.

Snowdowne's estimate for the 2010 term prices are midway between the roughly 30% rise global miners are believed to have broached and the 10% increase some in the Chinese industry have floated.

Last month, Yang Siming, chairman of mid-size mill Nanjing Iron and Steel Group told reporters that a small increase in the 2010 iron ore term price could be expected.

"I expect it could be around 5% to 10%," he said.

China's lead negotiator in the ore price talks, the China Iron and Steel Association, have not set a specific target, though its vice chairman Luo Bingsheng has hinted that the Chinese side could stomach an increase this year.

China's yearly talks with global miners Rio Tinto Ltd. (RTP), BHP Billiton Ltd. (BHP) and Vale S.A. (VALE) have not yet formally begun for 2010, though informal interaction between the two sides is frequent, a senior official with a state-owned Chinese steel trading company told Dow Jones Newswires Monday.