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Raising iron prices hinder reinstatement of annual pricing system - 22 Nov 10

Reportedly, a steel maker disclosed that BHP Billiton has sold 90 thousand tons of Newman fine iron ore at US$171.5/ton, up by 50% year on year. It has reached the highest level of this year.
The prices of iron ore has been raising. As a result, the three major manufacturers have all expressed positive attitude for the prospect.
In addition, BHP Billiton has announced to add US$570 million to the iron ore project in Australia. The company plans to increase the output of iron by 2.4 times in 2013.
At the same time, Rio Tinto has also decided to pour US$3.1 billion more to enlarge the port and railway transportation. The company’s investment in Australia’s Pilbara region has reached US$6 billion since this July.
It’s said that the increase of investments is boosted by the strong demand in China’s market.
Since the three major mining have good performance in this year by quarterly pricing system, it’s predicted that it’s almost impossible to rein the annual pricing system in next year.

 source: www.yieh.com
Nov 22, 2010 10:10
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