Iron Ore Price in China Rises to Highest Since 2008 on Demand

Industry News 2010-02-13 07:29:20

SOURCE :Bloomberg
By Jesse Riseborough

Jan. 8 (Bloomberg) -- The cash price of iron ore delivered to China, the world’s biggest buyer, jumped to at least a 13- month high amid rising demand from steelmakers.
The cost of 62 percent iron-content ore delivered to Tianjin port increased 4.3 percent, the ninth day of gain, to $130.1 a metric ton yesterday, according to The Steel Index. The spot price has posted six weekly gains, rising 31 percent.
Steelmakers in China, the biggest maker of the alloy used in cars and construction, are increasing purchases as the nation’s stimulus spending spurs demand. BHP Billiton Ltd., Rio Tinto Group and Vale SA are the world’s three-biggest exporters of iron ore.
The cash price, which has doubled from a 2009 low in March, is trading at about a 62 percent premium to contract prices, JPMorgan Cazenove said Jan. 6, boosting expectations for a gain in benchmark contracts.
The cash price is the highest on record on the Steel Index data compiled by Bloomberg since December 2008.

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