Mass Asian industrialisation to keep feeding into coal, iron demand
INCREASING concerns on the global economy shaking financial markets haven't changed the Goldman Sachs view on Australia's two biggest exports - the investment bank has upped its price forecasts for iron ore and coal.
Goldman said demand from China and other emerging markets appeared to be "holding up well", indicating a bright outlook for bulk commodities like iron ore and hard coking coal being gobbled up in Asia's mass industrialisation.
"This is important because, even with raw materials consumption in developed economies still below pre-GFC levels, the growth in consumption in emerging markets means that, for most major commodities, new global records of off-take will be set this year," analyst Malcolm Southwood told clients today.
"Fundamentally, then, commodities that are supply-constrained should remain attractively priced, and for some of them, further upside looks likely."
Comment: With this weeks great DFS ( http://www.indomines.com.au/assets/Uploads/110829-Feasibility-Study.pdf ), coal production ramping up in August and and construction of the iron sands project imminent, Indo Mines is perfectly placed to profit from higher prices ...
IDO Price at posting:
56.0¢ Sentiment: ST Buy Disclosure: Held
