iron ore squeeze lifts price hope

Is Paul Young related to Mike Young?
Ok its running maybe 2-3 months late people but its now moving ore and its about to start collecting cash lots of cash.
The ramp up is very fast will make DF green with envy over at AGO just how fast BCI does ramp up.

Cheers
Hotlegs

Iron ore squeeze lifts price hope Matt Chambers From: The Australian January 13, 2011 12:00AM

DEUTSCHE Bank is the latest forecaster to strongly increase its iron ore, coal and copper price expectations for this year.
The bank has pointed to a tight supply caused by labour shortages and the Queensland floods at a time of strong demand.

The increased forecasts have led to almost across-the-board increases in target prices and earnings forecasts for Australian miners covered by the bank.

"We expect physical, financial and seasonal demand to rise further in the first quarter," Deutsche analyst Paul Young said. "On the supply side, we see further supply constraints."

Coking coal and thermal coal supplies would be limited by the Queensland floods and winter in China, the world's biggest coal producer, Mr Young said. Iron ore supply was threatened by the current Australian cyclone season and infrastructure delays, he said.

Iron ore prices to hit record in 2011 The Australian, 7 days ago
The bank has boosted this year's average forecast for hard coking coal by 25 per cent to $US265 ($267) a tonne, its iron ore forecast by 41 per cent to $US160 a tonne and its copper forecast by 24 per cent to $US4.65 a pound.

Mr Young said he expected further supply constraints during the year caused by project delays and labour shortages, higher exchange-traded fund demand and cost pressures from higher material and labour costs.

Based on Deutsche's revised target prices for Australian miners, the companies now most undervalued by the stock market are Jabiru Metals, whose shares the bank expects will rise 46 per cent to 95c in the next year, Panoramic Resources, which is forecast to increase 39 per cent to $3.30 and Energy Resources of Australia, which is tipped to increase its value by 43 per cent to $16.30. BHP Billiton is expected to rise 19 per cent to $52.70 and Rio Tinto by 24 per cent.

Despite Rio's better near-term outlook, Mr Young said he continued to favour BHP over Rio because of BHP's more varied mix of commodities and its medium-to-long-term growth potential.

The increases come after Credit Suisse this week increased its 2011 iron ore forecast by 28 per cent to $US162 a tonne, coking coal by 6 per cent to $US235 a tonne and copper by 19 per cent to $US4.70 a pound.

Reports from Brazil yesterday said BHP had booked a high proportion of its iron ore sales from 2011 on monthly-set pricing, rather than the quarterly contracts that have become the norm since the annual pricing system fell apart in 2009. Dow Jones Newswires cited two industry executives as saying this was the case.

The big miner, instrumental in breaking the annual pricing system, would not comment on the reports yesterday.