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MMX sees iron ore headed up 20% from here

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Brazil's MMX is one of the largest miners in Latin America and CEO Roger Downey says it expects iron ore to jump back to $200 by the end of the year. MMX trades in the United States as MMXMY ( quote ) and is owned by the colorful and extremely wealthy Eike Batista. We usually look to VALE ( quote ) for Brazilian iron and in fact will suggest that ticker again here. VALE gets thrown around a lot because of its weighting in EWZ ( quote ) and the Bovespa in general, but use Brazil's overall market weakness to buy. The fact is, iron is on the verge of a comeback from current levels around $160 to $170. Note that RIO ( quote ) just paid the government of Guinea $700 million to start ore production there with the goal of shipping its first rock in 2015. This is a major project and will require a vast amount of money, but it tells you about the supply/demand equations. Iron ore soared 52% in 2010 and after a healthy move lower in February through March is now coming back on. But prices here are still 10% off their lows. Downey says supply should stay tight through at least 2013. Ultimately good for all the big ore producers, including BHP ( quote ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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