Steel ETF (SLX)

[Pro-Life]

China to push iron ore prices up
Updated: 15:15, Tuesday December 22, 2009

http://www2.skynews.com.au/business/article.aspx?id=409505

Iron ore prices are tipped to rise 20 per cent next year, thanks to surging demand from China.

According to a Dow Jones Newswires survey, the the annual contract price for iron ore fines, free on board, from Australia with a 62 per cent ferrous content is forecast to rise to $71.89 a metric ton in 2010.

Despite that forecast, the Chinese industry is already forecasting a tough line in annual contract negotiations.

Macquarie estimates that China's demand should grow to 654 million tonnes next year, making up a significant part of the world's demand of 1 billion tonnes.