iron ore price rise

Iron ore price negotiations start soon with an expected price rise of 30%. Given that existing iron ore suppliers like BHP and RIO are increasing there production plus there a host of new entrants in the market, e.g. FMG, MMX, MIS, TTY, etc and that’s just in Australia and the price is still going to go up shows that demand for iron ore must be greater than ever. It stands to reason that demand for additives like Tungsten (for hardened steel) and Molybdenum (non-corrosive steel) must also be greater than ever.

If iron ore suppliers get a substantial price rise you’d expect Tungsten and Molybdenum producers to be asking for higher prices as well. I noticed just over two years ago when iron ore prices increased 72% that’s when Tungsten and Molybdenum also started their price rises. Its possible that when QOL starts selling concentrates early next year Tungsten and Molybdenum prices might be at record highs.

Furthermore with China being such a large supplier of Tungsten and Molybdenum if they decide to keep more for themselves it will also add to the price pressure.