\n\t <\/p>\n
<\/p>\n
\n\tBy Rudi Filapek-Vandyck, Editor FNArena<\/font><\/font><\/font><\/p>\n \n\tThe world's number one iron ore producer, Brazil's Vale, appears to have taken the lead in this year's contract price negotiations with customers in China and elsewhere. The implications could be very positive for iron ore producers in Australia with Brazilian newspaper Valor reporting Vale is demanding a price increase of 114%, plus quarterly re-pricing mechanisms.<\/font><\/font><\/font><\/p>\n \n\tAs one would expect, the news is spreading rapidly around the globe as most stockbrokers and investment bankers currently have penciled in potential prices rises in the order of 60-80%, while hoping for a possible 90-100%.<\/font><\/font><\/font><\/p>\n \n\tNot one research report that has passed the desk of FNArena journalists this year has mentioned a potential price settlement of this magnitude.<\/font><\/font><\/font><\/p>\n \n\tMoreover, if the traditional iron ore pellet price premium would be restored this year, the price for iron ore pellets should go up by 125%.<\/font><\/font><\/font><\/p>\n \n\tFor good measure, the Brazilian newspaper report is unconfirmed at this stage, but it is likely that amidst the present positive mood in global equity markets, investors will focus on the good news, even if it is nothing more than a newspaper report at this stage.<\/font><\/font><\/font><\/p>\n \n\tAnd with good reason: the boost to sales and profits for the likes of Rio Tinto ((RIO)), BHP Billiton ((BHP)), Fortescue Metals ((FMG)), Grange Resources ((GRR)) and Mount Gibson ((MGX)) would be enormous.<\/font><\/font><\/font><\/p>\n \n\tOn the other hand, share prices for global steel manufacturers are likely to come under pressure as this should translate into margin pressure for the sector, even if price rises can be successfully implemented this year (it is quite unfathomable that steel prices could potentially rise by a similar magnitude).<\/font><\/font><\/font><\/p>\n \n\tApart from the above mentioned companies, other ASX-listed iron ore related companies include (in no particular order):<\/font><\/font><\/font><\/p>\n \n\tMurchison Metals ((MMX)), <\/font><\/font><\/font><\/p>\n \n\tAtlas Iron ((AGO)), <\/font><\/font><\/font><\/p>\n \n\tGindalbie Metals ((GBG)),<\/font><\/font><\/font><\/p>\n \n\tSundance Resources ((SDL)),<\/font><\/font><\/font><\/p>\n \n\tAustralasian Resources ((ARH)),<\/font><\/font><\/font><\/p>\n \n\tBrockman Resources ((BRM)),<\/font><\/font><\/font><\/p>\n \n\tSphere Minerals ((SPH)),<\/font><\/font><\/font><\/p>\n \n\tBC Iron ((BCI)),<\/font><\/font><\/font><\/p>\n \n\tFlinders Mines ((FMS)),<\/font><\/font><\/font><\/p>\n \n\tAlkane Resources ((ALK)),<\/font><\/font><\/font><\/p>\n \n\tTerritory Resources ((TTY)),<\/font><\/font><\/font><\/p>\n \n\tStrike Resources ((SRK)),<\/font><\/font><\/font><\/p>\n \n\tAdmiralty Resources ((ADY)),<\/font><\/font><\/font><\/p>\n \n\tWestern Plains Resources ((WPG)),<\/font><\/font><\/font><\/p>\n \n\tIndo Mines ((IDO)),<\/font><\/font><\/font><\/p>\n \n\tCarnavale Resources ((CAV)).<\/font><\/font><\/font><\/p>\n","protected":false},"excerpt":{"rendered":" Brazil’s Vale is reportedly demanding a price rise of 114% and this is likely to provide iron stocks with a boost today.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[89,88],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/56398"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=56398"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/56398\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=56398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=56398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=56398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}