At the beginning of the 2010, under the situation of several weeks’ increases, the iron ore spot price continued climbing, recorded high level. The price of 63.5% Indian power ore peaked U.S.$134 per ton, hiked more than one time since 2009. It is no doubt that the price rising of spot ore made China side tougher in the ore negotiation of 2010.
After the festival, the spot ore market presented larger increase. On January 4, 2010, the price of 63.5% Indian power ore was at U.S.$134 per ton and 62% PB power ore quoted U.S.$136 per ton at Tianjin port, at Qingdao port the price of 62% PB power ore was U.S.$136 per ton, 62% Indian power ore offered U.S.$130 per ton, 59% Indian power ore was U.S.$129 per ton, 65% Brazilian coarse power ore quoted U.S.$140 per ton and the price of 67% Brazilian iron ore fines was U.S.$146 per ton, while at Rizhao port, the price of 62% and 61% Indian power ore was U.S.$128 per ton and U.S.$124 per ton respectively.
Steel analyst of Guotai Junan Securities considered that the highest price surge on imported ore spot market since the 2009 was directly attributed to Indian government increased the ore export duty.
It is worth noting that opposite to the constant rising of spot ore, Baltic Dry Index (BDI) was closed at 3005 points on December 31 of 2009, recorded lowest since two months. The freight from Brazil to China was U.S.$27.091 per ton on December 30, down 14% from previous week and the transportation fare from West Australia to China ended with U.S.$11.046 per ton, down 10.6%.
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