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Iron ore demand is high, price increases

Iron ore prices are increasing as demand continues to rise. Labor shortages and equipment mean that many Australian mining companies cannot meet the iron ore demand as China's insatiable appetite for the raw material grows. Iron ore prices will increase as demand outpaces supply.

BHP Billiton recently announced that is expecting a tough year for iron ore production. Another factor leading some to believe that iron prices will increase as demand rises.
In its June quarter commodities report, the Australian Bureau of Agricultural and Resource Economics said the value of iron ore exports is expected to grow by nearly 30 per cent to $17.4 billion in 2006/07.
Iron ore production is expected to increase 13.3 per cent to 305.2 million tonnes over the same period.
"Supply increases of both iron ore and metallurgical coal will be somewhat limited during the remainder of 2006 and 2007 by mining materials supply difficulties and a dearth of skilled mining personnel," ABARE said.
Australian and Chinese leaders recently announced that they would work closely together to increase the iron ore exported to from Australia to China.
Iron ore is similar to the rest of the Australian mining sectors, leading many investors to believe the time is right to capitalize. Research investments in Australian iron ore and don't forget other leading producers. You may find that iron ore investments are right for you.