According to an article published yesterday in the London Financial Times, spot iron ore is closing in on $100 a ton. An excerpt of the article is below:
By Javier Blas in London
Published: July 22 2009 20:04 | Last updated: July 22 2009 20:04
Spot iron ore prices are fast approaching $100 a tonne, well above the
levels at which miners and steelmakers in Japan, South Korea and Europe
have struck supply deals, as demand outside China recovers.
The surge in spot prices has spurred several banks to forecast that
benchmark - annually negotiated - prices will rise next year, reversing
their previous expectations of a fall in prices. “The market is going
up, up and up,” said one London-based iron ore broker.
Spot ore prices in China rose this week to $93 a tonne - including
freight - and industry observers said the market could hit a year high
above $100 a tonne in the near term. The surge is a remarkable rebound
from April’s low of $58 a tonne.
Christopher LaFemina, mining analyst with Barclays Capital in London,
forecast a 5 per cent increase in 2010-11, to be followed by another 10
per cent rise the following year.