According to The Australian Financial Review, BHP plans to accelerate iron ore exports over the next six months to seize on what analysts expect will be a period of continued strength in prices for Australia's most lucrative commodity export.
Iron ore prices received by BHP over the past six months were 41 per cent higher than in the same period of 2018, and with Brazilian miner Vale promising a weak start to the year, Morgan Stanley believes supply of iron ore will fail to keep pace with strong demand from Chinese steel mills.
The benchmark iron ore price was fetching $US95 per tonne early in January, and Morgan Stanley has forecast an average price of $US93 per tonne until March 31 and $US85 per tonne in the subsequent three months.
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