Mhag Serviços e Mineração S/A

Prices

Iron ore prices, as well as those of minerals and metals in general, undergo oscillations according to economic cycles and have reached record peaks in recent years. Because mineral assets are global commodities, their prices are normally determined by the balance between global demand and supply for each metal.

Such a balance is sensitive to fluctuations in the supply of each metal. Therefore, the value of our main products may, and probably will, be influenced by production decisions made by our competitors.

In 2006 and 2007, iron ore prices increased 19% and 9.5%, respectively, reflecting strong global demand, particularly in China.

The graph below shows the growth in the price of iron ore since 2000:

Fonte: Sinferbase