Tuesday, June 24, 2008

Iron ore prices rise faster than oil

The mining and steel manufacturing communities are reeling from the Rio Tinto announcement this week that its iron ore fines prices were raised by 79.9% over last year, and its lump prices were up 96.5%, for annual contract prices, for an overall 85% increase. The deal is with Chinese steel maker Baosteel. Vale earlier this year saw settlement increases of 65% and 71% respectively.

The folks at mineweb.com called it "akin to oil prices instantaneously moving up to $270 a barrel, or gold bullion jumping in a jiffy to around $1,800 an ounce."

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