The BHP Billiton caution about iron ore and other commodity prices is not matched by the world’s largest iron ore producer, Brazil’s Vale group.
And if the speculation of another US Quantitative Easing, which drove Wall Street higher last night, is right, then in the short term Vale’s optimism may be helped by a wave of commodity speculation. When the US prints money traders move in and boost commodity prices (and the Australian dollar). While the the traders concentrate on metals like copper the effect spreads.
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