Here’s some foresight. Investors who jumped on the iron ore train are getting their dividends. Yesterday Murchison Metals (ASX:MMX) gave iron cousin Midwest (ASX:MIS) an all-share merger offer worth . The market loved it. Midwest leapt 12.3%. Murchison flew 8.3%. Everybody won, except Sinosteel. The Chinese giant was closing the net around its prey, Midwest. The nerve of another prey to go and outdo it.
May 27th, 2008 | Al Robinson | 0 comments | ContinuedAll Posts Tagged With: "iron ore"
The Iron Ore Pricing War Between China & Australia
There are four fronts in the battle for pricing power in the iron ore market: BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO), Fortescue (ASX: FMG), and spot market for iron ore. It’s hard to tell who is winning…or what losing really means. Andrew Forrest says he’d welcome Chinese investors on the Fortescue share register. But spots on the register are already at a premium. Over 70% of Fortescue’s issued capital is owned by just five major shareholders.
May 16th, 2008 | Dan Denning | 1 comment | Continued
Chinese Steel Price to Rise in Wake of Coal and Iron Price Hike
What a spectacle in the energy and resource markets. The deep-freeze in the iron ore negotiations between Aussie producers and Chinese steel makers appears to be thawing. Yesterday’s Financial Review reports that the number we’ve all been waiting for here is: eighty five. That’s the percentage increase in the annual iron ore contract price Aussie producers charge major Chinese steel makers.
May 7th, 2008 | Dan Denning | 3 comments | Continued
Australian Trade Deficit Grows for 75th Consecutive Month
The Australian Bureau of Statistics reported that the February trade deficit blew out by 30%, from a revised $2.59 billion in January to $3.29 billion in February. Exports fell by 4%, or about $18.2 billion in the month. The big laggards were metal ores, minerals, and coal. There is a simple explanation for Australia’s trade deficit: the country really doesn’t make much. How else can you explain something that’s been a regular feature of the economic landscape for the past 75 months?
April 8th, 2008 | Dan Denning | 0 comments | Continued
Being Third in Iron Ore is Enough to Make a Man Rich
The path to Australia’s first big bauxite fortune will look a lot like the same path Andrew Forrest trod in iron ore. Forrest—who according to Forbes magazine is Australia’s richest man—realised he didn’t need to compete with BHP and Rio Tinto. Just becoming Australia’s third biggest producer of iron ore would be enough to make him a very rich man. He was right. Incredibly, Forrest’s company Fortescue Metals (ASX:FMG) has yet to ship any actual ore to China.
March 19th, 2008 | Dan Denning | 2 comments | Continued