Tip of the Week: Demand remains robust for mining

TIP OF THE WEEK

Phil Doel, director of UK equities and manager of the F&C UK Equity Income fund, puts forward his case for London Mining.

London Mining The iron ore market remains attractive given its consolidated nature, with major players Vale, Rio Tinto and BHP dominating global seaborne supply. In addition, the increasing domestic demand for local consumption of domestic ore in India means this source of supply is being diverted. Demand remains robust for high quality long-term supplies, with China the main consumer of incremental supply, as high cost local production is gradually squeezed from the market. Demand in Western markets remains solid but subdued. Overall, therefore, I believe this should lead to ration...