Arrium bullish on iron ore

Arrium is optimistic about iron ore prices because of obstacles to new supply many analysts expect to flood the market, The Australian reports.

According to the newspaper, Arrium chief executive Andrew Roberts said although some commentators are "very bearish" on iron ore, "we're not".

The company plans to expand its South Australian mines so it can export 12 million tonnes of iron ore a year as downbeat views of prices are weighing on its stock.

"There is continued strong growth in China, and while longer term growth rates are expected to subside, this would still leave demand for iron ore at high levels," Mr Roberts said, according to the newspaper.