Thursday
Oct302008
Nasty Negotiations in Iron Ore
Thursday, October 30, 2008 at 12:22AM
I don't track the gory details of the iron ore market but I did post about the annual negotiations between the big 3 iron ore producers and China back in 2006. China's manufacturers collectively are boycotting Brazil's Vale (NYSE:RIO) for trying to tack on a 12% price hike to previously negotiated rates.
It looks to me like the iron ore producers were discounted heavily in advance of a slowdown in Chinese demand as Vale's shares have been dropping since May (sell in May will never sound like a sissy move again). China has been aggressively acquiring new deposits but it will take time for them to come on stream. It will be interesting to see if iron ore can get its mojo back.
It looks to me like the iron ore producers were discounted heavily in advance of a slowdown in Chinese demand as Vale's shares have been dropping since May (sell in May will never sound like a sissy move again). China has been aggressively acquiring new deposits but it will take time for them to come on stream. It will be interesting to see if iron ore can get its mojo back.
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