皇冠体育app

Economy

Markets

Industries

Insights

Reports

Events

皇冠体育app may agree 85% iron ore price rise

(Agencies)
Updated: 2008-05-06 09:50

Senior figures in 皇冠体育app's steel industry believe 皇冠体育app will concede to Australian demands to include a freight premium in iron ore price negotiations that could see a price rise of up to 85 percent, the Australian Financial Review reported on Tuesday.

The newspaper cited a senior source at a leading iron ore trader in 皇冠体育app saying there was a strong view within the industry that miners will achieve the 85 percent price rise, because Chinese steel mills were paying much higher prices on the spot market compared with the benchmark price.

Asian steel mills' negotiations with the miners on annual term iron ore prices have stalled over the proposed inclusion of a freight premium sought by the Australian miners to offset the higher cost to 皇冠体育app of importing Brazilian ore.

Miners BHP Billiton and Rio Tinto are holding out for higher prices than those negotiated by rivals including Brazilian miner Vale.