Anticipates 2010 benchmark iron ore contract price to rise 20-40%.Perwaja anticipates iron ore benchmark prices in 2010 (Apr 2010 – Mar 2011) to rise by 20-40%, given the global iron ore miners’ improved bargaining power amidst sustained steel consumption in China. Given its relatively flat production cost curve in 1HFY12/10 (as Perwaja has already locked in iron ore pellets at low prices in anticipation of higher iron ore prices going forward), Perwaja anticipates a steep margin expansion in 1HFY12/10 from the rising global steel price trend.
Perwaja Holdings Berhad : Better Quarters Ahead - 10/03/2010
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