Rio strikes back at rivals

Author: Paul Ploumis
02 Dec 2014 Last updated at 04:25:14 GMT
Even though it is very much clear that, most of the company's price and demand assumptions for iron ore seems to look heroic, the basic question to be answered by the company is that, can it make the market agree that the company is on the right path?

In order to prove that it is on the right path, the company will have to break all the strong links its share price has to the share price of Asian spot iron ore.  Since the  financial crisis and the economic slowdown in the year of 2008, the Australian listed shares of Rio Tinto, world's second largest iron ore miner, has been revolving, pretty much in the axis of the price of iron ore, even so, this year this association seems to have broken up a little.

This year the value of iron ore has fallen down up to 48 percent. Last  month, when the market closed, the value of steel-making raw material stood at 69.80 dollars per tonne, which indeed shows a slight hike from the closing value at November 26, which is 68 dollars per tonne, noted to be low since the 11th of June, 2009.