rio tinto optimistic over iron ore talks

Perhaps we might get that 24% rise after all. Should be soon as we move into May. The supply disruptions might have been a blessing in disguise.


Rio Tinto optimistic over iron ore talks
27/04/2006 02:53:17 PM AAP

Mining giant Rio Tinto is becoming more optimistic about price negotiations for iron ore amid a very tight market for the product.

The group's iron ore chief executive Sam Walsh said people were starting to talk "about numbers" in negotiations between iron ore producers and steel mills.

"I see that as an encouraging sign," Mr Walsh told reporters in Perth.

He said the market for iron ore "could not be tighter", with Rio and BHP Billiton's production hit by wild weather and CVRD (Companhia Vale do Rio Doce) experiencing a series of issues including strikes.

"All the signs are that the world economy is improving, that is a major factor in relation to the iron ore pricing negotiations.

"I suspect that if I had a view of an outcome before, my view is even more robust now," he said.

From a timing viewpoint, steel mills were starting to move into a "no-man's land" where they had to finalise the prices for their customers for the financial year beginning April 1, he said.

"Some people are starting to get a bit nervous," Mr Walsh said.