It is reported that a combination of strong Chinese demand and surging spot ore price add more weight to leading ore miners push for hefty price hike in upcoming contract ore talks. Still, India newly imposed export duty on iron ore and escalating steel prices are also giving them more leverage.

Market analysts have already increased their forecast of contract ore price in light of prosperous market sentiment. Shortly before, it's widely held that benchmark ore price would gain 20% to 30% for fiscal 2010. However most now believe the final result may beat the estimate.

Mr Glyn Lawcock an analyst at UBS said he expected strong production results from BHP Billiton and Fortescue Metals due in this week amid signs global steel production may have expanded by 3% in the quarter.

According to data released by Metal Bulletin China imported 62.16 million tonnes of iron ore in December setting a second high import record. And spot price of iron ore delivered to China has risen 30% from early December to USD 127.2 per tonne. That is to say, the spot price is 90% above last year contracts.

(Sourced from MySteel.net)
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