Carolyn Herbert:Taking a look at iron ore specifically, the...

Carolyn Herbert:Taking a look at iron ore specifically, the price of the commodity is around the $40 per tonne mark, what range do you think this is going to be trading in and do you think we’ve hit the floor yet?

David Lennox:Yes, we think we’ve hit the floor. We think iron ore through 2016 will trade probably between US$38 dollars a tonne up to US$60 per tonne, to actually close the . The reason we say that is because if you have a look at 2015, China imported a record 953 million tonnes of iron ore, that’s up $32 million tonnes on 2014. In 2016, we expect China will import something like near on a billion tonnes of iron ore. The reason they are importing such a huge quantity is primarily because they want to conserve their own home iron ore and also they believe they can get cheap 62 per cent fine iron ores at a very good price form the import market, so that’s why we basically suggest that through the latter part of 2016 we will see a very strong rally in the iron ore market.

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