just an interesting note taken from another thread...Demand for...

just an interesting note taken from another thread...

Demand for iron ongoing
blueskyreport.com.au 28 sept.


Fortescue Metals announced last week the company is on track to export 28 million tonnes of iron ore during its first twelve months of the production cycle. Andrew Forrest has confirmed the company cannot stockpile one teaspoon of the valuable commodity at Port Hedland. No sooner does the train arrive, the loading dock fills shipping containers and the process begins all over again. This supports our view of the industry. Some analysts are saying there is no evidence of high volume demand from China and the boom will be over in twelve months. If this is the case then why is Sinosteel so interested in Murchinson after taking over Midwest? Why has a major Chinese coal and steel producer paid $1.5 billion for Linc Energys coking coal tenements which is needed for steel making? Why has a takeover offer been formalised for Portman? Why has the price for Iron Ore increased by more than 400% over the last four years and is tipped to rise by 20% again over the next twelve months?

It might take 12 months or even two years, but this share market crisis will pass and when it does China will continue to urbanise. Jim Rogers believes China is now where the US was in 1908. The US market suffered a severe correction but then went on to grow significantly until 1929. He believes China has a further 20 years of growth ahead.

Phosphate and Iron Ore demand continues to be a major challenge for suppliers. Fertilizers are a necessity for protein related foods such as beef and the world population will continue to grow while land shortages and biofuels will become a major challenge over the next two decades. Iron is the basic ingredient for industrialisation and this time there is close to one billion people involved compared to when the US urbanised the population was closer to 150 million.