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Rio Tinto confirms price rise for iron ore

0 CommentsPrint E-mail Xinhua, May 21, 2010
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The world's second largest iron ore producer Rio Tinto Ltd said on Friday it would achieve almost double the price for its iron ore after securing a price agreement with major Asian steel mills except those in China. (See more about Iron Ore Talks)

However, unlike in previous years, the agreed prices relate only to the period from April 1 to June 30 and are not a benchmark for the entire year, a spokesman for Rio Tinto said.

It was believed the increases would see prices more than 90 percent higher compared to last year's benchmark prices.

Sources said?the price rise would mean iron ore fines rise from about 62 U.S. dollars per ton last year to about 110 U.S. dollars to 120 U.S. dollars per ton.

Prices of iron ore lump, which last year settled at about 71 U. S. dollars per ton, are also believed to have risen more than 90 percent.

The prices are understood to be based on the quarterly spot prices from January to March this year, when iron ore was trading strongly in world markets.

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