Iron ore prices may increase less than expected in 2009
The price for iron ore is likely to increase less than expected in 2009 due to steel mills decreasing their prices while demand is slow and the global economic recovery, delayed, according to Bloomberg.The world's second and third largest producers of iron ore, Rio Tinto Group and BHP Billiton Ltd, plan for a 10 percent increase in prices instead of the previously estimated 15 percent.
Decreasing steel demand from automakers and appliances producers has pushed steel mills to reduce prices. China has taken the lead in price cutting with a US$90/ton decrease for iron ore, along with declining freight costs as the rate will drop to at least 66 percent by year end.
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