Japan Metal Daily said that contract prices of iron ore produced in Australia may rise 32% in the July quarter from the prior three months raising costs for steelmakers.
The newspaper, without saying where it obtained the information, said that iron ore may cost USD 158 a tonne, according to a calculation method proposed by suppliers BHP Billiton Ltd and Rio Tinto Group. That’s up from the provisional price of USD 120 a tonne for the April to June quarter.
The paper further said that the amount is derived from the three month average of the iron ore spot price from March to May on the assumption that the market price stays at the current level until the end of the month.
At USD 158 per tonne, iron ore would cost 2.6 times more than the fiscal year ended March.