Friday, Jul 04, 2008
OUCH!!! - Inflation tsunami to hit UK shores!
BBC: BHP almost doubles Chinese prices
Mining giant BHP Billiton has reached a deal with China's largest steelmaker to almost double iron ore prices.
Under the agreement, covering contracts for one year from 1 April 2008, BHP will increase its prices by up to 96.5% for deliveries to state-owned Baosteel.
Posted by tyrellcorporation @ 10:41 AM (355 views) Add Comment
5 Comments
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1. whiteknight said...
That excludes any relative exchange rate adjustments.
Everything is up. It is filtering through. Chemicals have gone north. Chemicals are used in almost every fabrication process.
Along with "fuel" of course.
Then there is a distribution infrastructure and logistics systems that seemd to be predicated on oil at a maximum of around $40. Whoops.
2. fancypants said...
good news for the Aussie bubble though? Aw yeah.
3. geed said...
So China have accepted that inflation is heading north on its shores. The Chinese are not stupid, which means they are going to export some more of that inflation that it has been experiencing. Base IR's wont be cut in the next 6 -12 months here in the UK.
@2 Almost everything that is sold in Australia is now made in China, meat pies and holdens being the only exception. This means inflation will increase even further in OZ, IR's will rise beyond the current base rate of 7.25% and the publics pockets will be hit even further. I can't see them rushing out to boost Australias housing bubble when the mortgage rate hits 10%. Aw nah.
See that is why inflation should always be targetted, once it is in the system you can't get it out.
4. Phil said...
Geed as an old ozzie I take it as an offense the idea that apart from meat pies and Holden cars everything else is imported, please note that we also make our own beer. Well most of it.
5. deepak said...
This is what we call Inflation in the pipeline
We will pay for this next year when those goods reach our shores.