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Iron Ore Expected to Lead SGT Commodities for 2013… from page 1
that these expectations were all surpassed
as iron ore reached the USD$140/t –
USD$150/t range.) One possible reason
why prices are moving up again is because
smaller steel mills continue to restock ahead
of Chinese New Year celebrations, quoting
a Singapore iron ore trader saying that
they are buying in anticipation of greater
demand for steel after the New Year (Coff-
man, 2013).
The recent price climb gave SGT a huge
advantage at the beginning of the year.
SGT’s CEO Mr. Hamid Dizji stated that
the Commodities Business Unit of the
group continues to be positive about iron
ore’s growth and its potential to stabilize by
2014.
“
Considering all other factors, we are
confident that SGT’s experience in the
industry will give it a good advantage on
how to handle the shifting iron ore market
in the coming years. As a trading company,
we are well aware of the highs and the lows
surrounding a certain commodity and that
is the reason why a sound business acumen
is very important in dealing with such situ-
ations. It is very risky just to depend on the
expectations of other people and what the
industry in general is predicting. In some
instances, what is happening in reality is
much faster than these market expectations.
One has to have the experience to under-
stand the trends of his business to know
when to sell and when to stock up.”
Dizji added that while SGT is currently
focusing on iron ore, it is only one of its
major commodities and there are dedicated
teams in charge of expanding and develop-
ing the other products under the group’s
umbrella.
What is Iron ore?
Iron ores are rocks and
minerals from which
metallic iron can be eco-
nomically extracted. Iron
is used to make steel,
which is used in engi-
neering, manufacturing
and to construct build-
ings around the world.
Reference List:
•
Sayce, K., 2012. With Iron Ore Prices
Falling Will Fortescue ‘Break the Buck’?,
[
online] Australia: Moneymorning.com.au.
Available at:
com.au/20120905/with-iron-ore-prices-
falling-will-fortescue-break-the-buck.htmll.
[
Accessed 02 February 2013]
•
Els, F., 2012.Iron Ore is Having a
Great December as Chinese Stockpiles are
Slashed, [online] Canada: Mining.com.
Available at:
ore-is-having-a-great-december-as-chinese-
stockpiles-are-slashed-76281/.[Accessed 02
February 2013]
•
Wong, C., & Yeo, M., 2012, ‘Spot Prices
of Iron Ore Climb Again ’ on Stronger
Rebar , Platts SBB Steel Markets Daily, vol.
6,
issue 234, pp. 1-3.
•
Zhu, J., 2012.
Iron Ore – For the Sake of
Steel,
On the Ground. Standard Chartered.
•
Coffman, J., 2013, Iron Ore Prices on
the Rise Again,
The Motley Fool
[
blog] 31
January. Available at:
jamesacoffman/2013/01/31/iron-ore-pric-
es-on-the-rise again/23281/ [Accessed 02
February 2013].
●
North China import / [Platts] IODEX 62% Fe S/dmt - CFR S/t
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