Iron ore is up so don't rule Perth out
Wall Street Journal senior economics reporter James Glynn says the mining boom in WA might not be totally over.
The iron ore price has hit US$142.80 – the highest point in five months, running counter to predictions by many that the price could drop below $100 this year.
Credit Suisse analyst Paul McTaggart told The Australian Financial Review he expects the price will come back down but not as much as previously thought.
“I don’t think iron ore will stay at US$130 a tonne. We are heading into a seasonal period of weakness when China construction demand weakens so I think iron ore prices will moderate. However, prices might come down to what will remain a relatively robust level – and come March of next year, when China is back online, iron ore could rally from a higher level,” he told the paper yesterday.
Perth was identified as having the three top suburbs with the greatest increase in earning capacity.
