Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Friday, February 22, 2008

News You Can Use, TGIF Edition

Chinese Steel Mills Reject Rio's Push for 71% Increase in Iron Ore Price Chinese steelmakers, the largest buyers of iron ore, will reject Rio Tinto Group's demand for a minimum 71 percent price increase in the raw material, two people familiar with the negotiations said.

XX Sean's note -- you should really read this story on Rio and the Chinese steel mills. The mills are stubbornly holding the line at paying "just" a 65% increase in the price of iron ore. Rio would be "disappointed with 65%".

Get a clue, Rio! Talk about potentially killing the goose that lays the golden egg.

Uranium One Cuts Production Forecast 32%; CEO Resigns

A slower-than-expected rate of underground development at the Dominion mine in South Africa was the main reason for the revision, the Toronto-based company said in a statement to Johannesburg's stock exchange today. Uranium One now estimates production this year at 3.15 million pounds, and cut its 2009 forecast 15 percent to 6.8 million pounds.

XX Sean's note -- The Uranium One news hurt because that was a position in Red-Hot Resources. On the other hand, uranium stocks across the board are perking up because 1.5 million pounds of supply has just been removed from the market.

Iran May Get 10 Percent of Gas Market by 2028 with Second Largest Reserves Iran could supply 10 percent of the world's natural gas demand within 20 years as the country ramps up production at new fields, according to Seyed Reza Kasaeizadeh, head of the National Iranian Gas Co.

Sugar Surplus Will Be Twice Previous Estimate Next Season, Kingsman Says The global sugar supply surplus in the 2008-09 season will be more than twice as big as previously estimated because a gain in prices will encourage more production in Brazil, Societe Kingsman SA said.

Ethanol Demand Boosts Food, Fertilizer Costs, May Add to Carbon Emissions U.S. plans to replace 15 percent of gasoline consumption with crop-based fuels including ethanol are already leading to some unintended consequences as food prices and fertilizer costs increase.

Gold Heads for Biggest Weekly Gain in London in 19 Months; Platinum Drops Gold, little changed in London, headed for its biggest weekly advance in 19 months as lower U.S. interest rates may revive investor demand for the metal as an alternative to the dollar. Platinum dropped from a record.

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