Well, looks like the iron ore China is digging up over there is...

Well, looks like the iron ore China is digging up over there is pretty low grade. Now we know the real reason why Wuhan Iron and Steel Corp. (Wisco) want's the JV with ADY and why ADY's ore is so attractive to them.

"China iron ore bad for furnace, bad for production and bad for customer."

"A combination of declining Chinese mine grades, increasing Indian export regulation, an evolving iron ore marketing landscape and ongoing rail and port infrastructure constraints should serve to keep iron ore markets finely balanced," RBC said in the report dated Sept. 24.

The broker is forecasting a 15 percent gain in prices for the year starting April 1, 2009. Iron ore prices, which have risen for six straight years to a record, may rise 18 percent next year, Goldman Sachs JBWere Pty said Sept. 16.


Wuhan Steel mulls iron ore jv in Chile with ADY

"We held similar negotiations a year ago, but it fell apart on lack of any info about the resource. But after a year of using their iron ore fines, we are convinced that the iron ore is good quality so we would like to resume the talks," an official from Wuhan Steel's international trading company told Metal Bulletin this week.