Global iron ore shortage may continue up to 2012

June 15, 2008

June 15th (Steel Guru) – Merrill Lynch indicated that the iron ore price will keep rising and that the shortage of supply will continue to 2012.

Merrill Lynch said that because of China’s strong demand, the contract price is expected to rise by 20% in 2009. The estimation is higher than market expectation by 5% to 40%.

It said that increasing energy, labor, and facilities costs and exchange fluctuations will become the main problems which producers will focus upon.

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