Not exact matches
After the U.S. elections,
prices for copper and
iron ore, used
in building and construction projects, surged amid hopes for
increased infrastructure spending.
As millions of people
in emerging markets left rural areas for cities, demand
increased for building materials such as the
iron ore used
in steel, and this supported
prices.
Huge
increases in supply and large debt loads that needed to be serviced saw
iron ore prices collapse as the supply and demand curve proved non-linear.
Cele notes that, «the demand from China for
iron -
ore continues to grow, but at a declining pace, further exacerbating
pricing pressure,» meaning that Vale's considerable investment
in nickel, coal, fertilisers and copper will only partially mitigate the impact of the
increase in iron -
ore mining capacity globally on the company.
The
prices of other resource commodities
increased on average by 5.8 per cent over the three months to April, driven by
increases in the
prices of alumina, coal and
iron ore.
The materials sector has risen by 16 per cent, boosted by continuing strength
in base metals
prices and expectations of substantial
increases in contract
prices for coal and
iron ore.
For
iron ore and coal, substantial
increases in contract
prices are set to take effect later this year, building on the already sharp
increases of last year.
Rapid growth
in global steel demand has also boosted contract
prices for other bulk commodities; coking coal contract
prices increased, on average, by 25 — 35 per cent
in US dollar terms
in recent negotiations, while
iron ore contract
prices have risen by close to 20 per cent.
Negotiations for coal and
iron ore contract
prices for 2005/06 have commenced, and further large rises are expected following the steep
increases in 2004/05.
As a result of the strong global demand for steel, coking coal producers negotiated an
increase of around 120 per cent
in contract
prices, with
iron ore contract
prices generally rising by more than 70 per cent (Graph 39).
The recent annual contract negotiations between suppliers and Japanese steelmakers for
iron ore delivered
price increases of nearly 20 per cent
in US dollar terms, with significant
increases expected
in contract negotiations for coal over coming months.
But seven years later, they still can't seem to bid farewell to all those fond memories of the good ol' days... How else do you explain, for example, the majors maintaining & even
increasing production
in the face of a (self - reinforcing)
iron ore price collapse.