China Agrees to 96% Increase in Ore Prices

Posted by Patrick O'Connor on 6/23/08 12:51 pm

China is setting commodity prices around the world, and its agreement to a 96% increase in iron ore prices today is helping to drive some of our top-10 holdings in this sector significantly higher (see below).

Financial Times

Chinese millers agreed to pay Anglo-Australian miner Rio Tinto up to 96.5 per cent more for their ore supplies this year, the largest ever annual increase and well above the 9.5 per cent increase paid last year.

The rise suggests that demand for commodities from emerging economies remains strong, in spite of the US slowdown, fuelling fears that global inflation will continue to rise. The rise – an average 85 per cent – surpasses the record increase of 71.5 per cent agreed in 2005, when the commodities boom gathered pace.

Navellier top-10 holdings benefitting from this news:

Power Dividend Portfolio
Cleveland-Cliffs (CLF); 1-yr Chart; Profile
United States Steel (X); 1-yr Chart; Profile

Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any securities recommendations made by Navellier & Associates, Inc. in the future will be profitable or equal the performance of securities made in this report. For a list of recommendations made by Navellier & Associates, Inc., for the preceding twelve months, please contact Tim Hope at (775) 785-9416.

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