Iron Ore

BlueScope Steel reported lower than expected earnings and with conditions expected to remain difficult brokers see little reason to get excited about the stock.

According to Scotia Capital it is again time to be bullish on commodities, with preferred exposures being iron ore, coking coal, zinc, copper and aluminium.

Commodity prices have not been immune from the current financial markets turmoil but Barclays Capital expects fundamentals will provide support once markets settle.

Following a weaker than expected July month industry consultant MEPS expects steel prices will stabilise over the rest of the year, with scope for small increases early in 2008.

Will it be a deal with iron ore major Rio Tinto? Investors are eagerly awaiting Grange Resources’ next ASX announcement, due soon.

National Australia Bank’s latest survey of the mining sector shows labour costs as the greatest issue for companies but profits are expected to remain historically high.

A slowing economy on the back of the sub-prime crisis means the US no longer leads the world in base metal consumption, but an expected pick-up in coming months keeps Barclays positive on the sector.

With iron ore prices like these, there’s no point sitting around watching the world go by. JP Morgan sees grand, and rapid, expansion plans.

Rio Tinto and Consolidated Minerals are attracting most attention in terms of corporate activity among resources companies, but a battle between two juniors appears potentially as interesting.

Cash rate left unchanged at 6.25%.