Iron Ore Prices
JPMorgan Chase said recently that iron ore prices could increase by as high as 65 percent this year as Chinese demand from many of the private, smaller steel mills is stronger than anticipated.
This has caused some consternation on the part of Chinese government officials who had been negotiating with the three major iron ore providers over prices, when the smaller steel mills made deals with the companies which made it more difficult for China to maintain its hold on the prices it wanted.
The three major providers of iron ore are Vale SA (NYSE:VALE), Rio Tinto Group (LSE:RIO)and BHP Billiton Ltd. (NYSE:BHP), all of which should benefit strongly from the inevitable higher prices.
China steel production has been far higher than expected, and supposedly in recovery mode while the rest of the world is largely still in a recession, contrary to the assertions we're in a recovery.
Iron Ore Prices
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