Iron Ore

Weekly musings from your editor. Are commodities more driven by investors, the US dollar or supply-demand dynamics? An analysis to try to find the answer.

Shares in BHP jumped 5% in offshore markets last night following speculation China is looking to move on BHP. The Dow closed down 36 points.

BHP has just settled on coal contracts at triple the price of 2007.

Danske Bank suggests the March correction in commodities has all but run its course.

The takeover panel has blocked Shougang’s 19.7% stake in Mt Gibson Iron.

Sims Group dominates the scrap metal sector but Intersuisse is attracted to the growth potential of CMA Corporation and rates the stock as a Buy at current levels.

On top of this year’s price increases, analysts are looking ahead to more price increases in subsequent years.

GaveKal looks at why commodity prices are soaring but commodity producer share prices are not.

After falling in January Baltic Freight rates have risen more than 45% and TD Securities suggests this implies stong commodities demand and as a result global economic activity remains solid.

Steel producers are passing on higher input costs and steel industry consultant MEPS expects this will see prices move higher through to the middle of the year.