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Wednesday, 13 January 10
IRON ORE PRICE TIPPED TO RISE 40PC, SAYS ANZ


THE price battle in the controversial iron ore negotiations is expected to intensify.

ANZ senior commodities analyst Mark Pervan has increased his forecast for contract iron ore prices from a 20 per cent to a 40 per cent gain this year.

Mr Pervan said the prediction was at the top end of market consensus, which was on a 20 per cent to 40 per cent rise. But he said it could end up being conservative, with spot iron ore prices now 80 per cent above the current 2009 contract price.

"We expect the Chinese steel mills to negotiate the benchmark outcome, and early, on the fear of repeating last year's debacle when Japanese steel mills ended up striking an unpalatable outcome," he said.

"This creates more contract price upside, with little time left for super high spot prices to ease." Britain's Ocean Equities analyst Sam Spring said the balance of power in the negotiations remained with the major producers because the near- to medium-term outlook for iron ore remained supplied-constrained.

And it has been reported that the top three producers -- Rio Tinto, BHP Billiton and Brazil's Vale -- have not held significant pricing talks with China and are focusing on Japanese customers to reach a benchmark deal they can then present to China on a "take it or leave it" basis. To Read more
The Australian



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Wednesday, 13 January 10
SOUTH AFRICA STEAM COAL PRICE FALLS SHARPLY
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Wednesday, 13 January 10
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Coal and natural gas company CONSOL Energy Inc.made its first sale of high-volume coking coal to Asia from its Bailey Mine in Northern Appalachia. T ...


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