Iron Ore

More press reports from China suggest a counter bid for Rio Tinto is a high probability.

Ongoing tightness on the supply side is putting upward pressure on coal prices and analysts have reacted by lifting estimates for coming years.

According to a business publication in China one of the government funds is poised to launch a USD200bn bid for Rio Tinto.

OneSteel has lowered earnings guidance for the year but brokers have maintained a positive outlook given expectations of a recovery in the second half of the year.

Iron ore darling Fortescue might be the flavour of the month with investors, but analysts are more realistic.

ROC Oil has so far found dust in Angola, while AWE succeeds across the Ditch. Macarthur coal just keeps running into an infrastructure wall.

Annual negotiations for iron ore contract prices are due to start soon. Chinese customers are advocating unity amongst steel firms, while BHP is as bullish as can be.

There were no upside surprises emanating from the third quarter production reports of BHP, Oxiana, Newcrest and Gloucester Coal. BHP disappointed most.

Weekly musings from your editor. It’s iron ore we look into this week as the market craze seems to have matured.

National Australia Bank has joined the rush to lift forecasts for iron ore prices, the group forecasting a 15% increase but seeing price risk as to the upside.