Murchison Metals Ltd., an Australian iron ore producer, expects annual contract price talks for exports to be completed by June 30, forecasting a significant increase for the nation's producers.
There is a “very positive outlook for iron ore prices'' through to 2011, John Westdorp, chief financial officer of Perth based Murchison, said today in a slides presentation sent to the Australian stock exchange.
Brazil's Cia. Vale do Rio Doce, the world's largest exporter of the ore, agreed in February to at least a 65 percent price increase with Asia's three largest steelmakers for the year started April 1. Rio Tinto Group and BHP Billiton Ltd. are seeking a bigger increase that takes into account cheaper freight costs from Australia. Merrill Lynch & Co. forecast they may secure a gain of more than 71 percent.
“Recognition of freight differential will be a significant boost to the Western Australian iron ore industry,'' Murchison's Westdorp said.
Source: Bloomberg
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