IRON ORE TO STAY ON TOP
Iron ore prices may remain close to record levels in 2006, thanks to growing demand from Chinese manufacturers. This opinion was expressed avgusat 16 largest Canadian research firm Canaccord Capital Inc.
The growing steel production will increase demand for iron ore supply by about 8.5% to 753 million tonnes in 2006, said in a report analysts Damien Hackett, Gary Lampard and David Dattels.
This year, iron ore prices were increased by 71.5% or by 40 dol.t. Since 2001, the main factor in increasing iron ore prices is China. However, it is the largest iron ore proizvodietli company CVRD, BHP Billiton and Rio Tinto Group, can not meet the growing demand for iron ore. Deficiency of iron ore remains, and the new facilities will be introduced no earlier than 2006
According to the report, Canaccord, prices in 2006 could rise by 10%. Growth in 2007 may already be at 25%, in 2008 - by 12.5%. According to analysts from the Australian UBS AG iron ore prices in 2006 could rise to 20%, again due to the scarcity of raw materials and the growth of China#39;s steel industry.
