28/07/14 – Anglo American tips soft iron ore for remainder of 2014
Mining giant Anglo American expects iron ore prices to remain depressed for the rest of the year as China’s soft housing market keeps demands beneath growing supply.
According to The Australian, the British miner’s Australian-born chief executive Mark Cutifani says the outlook is better for coking coal, another crucial Australian export.
“Uncertainty is likely to persist for the balance of 2014, though there are some encouraging signs that activity is strengthening in our key markets,” Mr Cutifani said as the company reported its latest results.
“Over the long term, we expect new supply to be constrained and to see tightening market fundamentals and a recovery in price performance.”
Anglo American announced a tripling of first-half profits, shrugging off disruptions caused by strikes at platinum mines in South Africa.
Profit after tax jumped to $US1.46 billion ($A1.58 billion) in the six months to the end of June compared with $US403 million for the equivalent period in 2013, Anglo said in a results statement on Friday.
Currency fluctuations helped to offset cost inflation, platinum strike action and lower prices for commodities, said Mr Cutifani.
Source – BusinessSpectator.com