Thursday, January 06,
A London-based reference price supplier says 2011 will see iron ore prices reach an all-time average high – beating the record set during the last commodities boom in 2008.
The Steel Index says expectations are for the average annual spot market price to rise to between $US153 and $US154 US a ton – That’s for iron ore fines with 62 per cent iron content – delivered to China.
Last year the average was just under $US147 a ton, while in 2008 the figure was just under $US150.
The Steel Index says it’ll be China driving demand with steel production there set to be stronger for the next few months.
Prices will also come under pressure from supply – which hasn’t yet responded to higher demand levels.
The company also says the floods here are having an impact on prices, even though production has been relatively unaffected.
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