October 07, 2008

Iron ore prices to rise more than 10% in 2008

Mr Corretora an analyst with brokerage Planner told BNamericas that Iron ore prices are due to rise by more than 10% in 2008 driven by strong demand from Chinese steel producers.

The analyst said "I don't have an exact figure to disclose at the moment, but I believe prices will move upward. China can try to make negotiations tough, but their steel production is on the rise reinforcing the need for iron ore.”

According to the Planner analyst meanwhile, the value of the raw steelmaking material could move into more stable territory in 2009, following a possible decline in the US economy.

Brazilian mining and metals group CVRD which sets the annual price benchmark, secured a 9.5% increase to its selling price for 2007, following a 19% rise in 2006 and a 71.5% hike in 2005.