Iron ore prices to go up by 90%
Over 80% of the Iron ore production across the globe is controlled by just three companies, whereas the top 10 iron and steel producers of the world control only 50% of the global iron and steel production.
That is precisely the reason why the Iron ore producers always dictate terms.
Till the year 2009, the Iron ore producers used to agree on annual contract pricing system with the global iron ore consuming companies. But given the huge demand spurt for the mineral from the Chinese companies , which is far in excess of the supplies, has now prompted the Iron ore producers to shift gears to their advantage.
Yes, the iron ore producers are all set to scrap the annual contract system and go for quarterly pricing of the valuable raw material henceforth. And already two of the producers have gone ahead with a 90% price increase for the second quarter of 2010 I.e, April 2010 to June 2010.
The 90% hike could well become the benchmark pricing for the rest of the consumers as they are left with no choice. And if there is the expected recovery in the US economy in the coming months, the pricing could only go up further in the third quarter of 2010, say experts.
There are at least 10% of the market experts who feel that the 90% hike is indeed very steep, and that alone could pull down the demand for iron ore in the second half of 2010. Let us see who is right.
Google is the undisputed leader in internet domain
Google has been able to show the best ever results in the year 2009 when every other global technology major was struggling to remain afloat. The company has been smartly identifying the changing customer needs and using the research and development process to bring out improved products and services.
That is what has helped the company to remain the undisputed leader in the internet domain, and that is set to only improve further, even though it may be out of China for some time.
The record profits made during 2009 is only helping the company to become more aggressive on research and development.
Is US ready to punish Iran further
Iran has been haunting the US and the West for the last 15 years, despite massive UN sanctions being in place. Iran is still importing most of the petrol and diesel requirements as it does not have the refining capacity internally.
The country continues to be the economically weakest country in the middle east, despite being the second largest natural gas reserve holder of the world.
US has been haunted by this fundamentalist country through it’s successful efforts to foment trouble and disturbance in Iran, Palestine and Afghanistan. Now Iran has declared that it is a nuclear power and is going ahead with massive Uranium enrichment program.
The US has already burnt it’s fingers by reading the Iraq and Afghanistan situation wrongly, and it cannot afford to take one more dangerous military offensive decision, against Iran, say experts.
But any further delay in acting sternly against Iran, would anyway increase the chances of further long term threats to US and West, which also the US cannot afford.
So the choice for US today is between the devil and the deep sea. Only time will tell as to whether US will bite the bullet, or it would be taking a reactive measure against the adamant Iranian regime.
The current weak economic scenario in US and the West is an added reason for the US to go slow against any military decision.