Brazilian mining company MMX Mineracao e Metalicos SA said that Chinese iron ore import volumes have risen sharply this year and spot prices are now in excess of USD 100 per tonne including carriage and freight costs.

Mr Roger Downey CEO of MMX said that Chinese iron ore import volumes were 40% higher this year despite a slowdown in October. Looking ahead, Mr Downey said that he didn't see any halt to rising China spot prices in 2010.

He added that "The pressure is really on supply.”

Mr Downey discounted the idea that the use of more of China's high cost mines would offer some relief to rising prices. He said that "The average cost in Chinese mining has to go up.” He further added that for this reason China has preferred sea borne imports, as it is more practical.

Mr Downey said that "Spot prices are above USD 100 a ton; I expect them to rise further with the expected growth in steel production next year. The outlook for iron ore prices is clearly favourable.”

(Sourced from Dow Jones Newswires)