Original article by Peter Ker
The Australian Financial Review – Page: 18 : 30-Oct-18
The price of benchmark iron ore with 62 per cent iron content has risen to its highest level for eight months in late October. Macquarie attributes the recent rally to factors such as an increase in Chinese steel production ahead of government-mandated winter cutbacks and growing demand for lower-grade iron ore amid falling margins. Macquarie notes that stockpiles of lower-grade Australian ore have fallen in recent weeks. Meanwhile, the discount for lower-grade ore is expected to narrow, which will benefit companies such as Fortescue Metals Group and Mineral Resources.
FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERAL RESOURCES LIMITED – ASX MIN, MACQUARIE GROUP LIMITED – ASX MQG, JP MORGAN AUSTRALIA LIMITED, BCI MINERALS LIMITED – ASX BCI, CLEVELAND-CLIFFS INCORPORATED, ATLAS IRON LIMITED – ASX AGO, BROCKMAN MINING LIMITED – ASX BCK