Thursday, February 25, 2010

Indian Iron Ore Prices Head For $140 a Tonne

Reuters reports that iron ore prices from India are set to hit levels last seen during 2008. Deals done on Thursday were at $137-$138 a tonne C&F, up from $129 a tonne last week. Meanwhile there were rumours amongst traders of deals being done at $140-143 a tonne.

According to Beijing-based trade information company Umetal, steel mills did not increase inventories before the recent Lunar festival, leading to shortages when factories returned to work this week.

The price of iron ore last hit the $140 a tonne level back in 2008 when purchases for it post-Olympic infrastructure pushed up prices.

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