Economy / Australia
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In Awe Of Iron Ore?
May 2008 | Market StrategySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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The iron ore market has certainly been red hot of late, with this year's contracts being kicked off in April with 65-71% price hikes from Brazil's Vale. Negotiations have been more difficult this time around due to high prices, restricted supplies and transportation bottlenecks. The prime driver behind higher demand has been surging demand from China, where iron ore imports were up 10.4% y-o-y in January-March according to the latest available figures, and supply is struggling to keep up. Vale is leading with way in expanding capacity, with US$4.4bn of capital spending this year designed to contribute towards an expansion