Iron ore prices to soar

The latest view on the 2008 iron ore price is that it will increase by 30-50% over 2007 price level. Interestingly, this perspective is not driven by the BHP-Billiton - Rio bid. Rather, this view emerges for a different reason - which is urbanisation in China and India. According to the report, demand for steel will increase as people move from rural agriculture-based activities to manufacturing or service-based activities located in cities.

For original report, see http://www.stuff.co.nz/4282964a6026.html

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