According to JPMorgan Chase & Co, contract iron ore prices may rise 65%in 2010 amid stronger than expected demand from steel mills in China.

Mr David George an analysts of JPMorgan in a March 12 report said that the steelmakers may pay 159 cents a dry metric ton unit in the financial year beginning April 1st 2010 from 97 cents this year. That compares with their earlier forecast for a 20 percent gain.

JPMorgan’s George said in the report said that “Chinese steel production has surprised post crisis and continues at a pace fast enough to drive up demand for steel raw materials, while the rest of the world is still in recovery mode.”

(Sourced from Bloomberg.net)