The price of metallurgical raw materials went up sharply

The cost of iron ore in the world market has increased by 60% over the past four months, reports Financial Times. The price of iron ore concentrate, after a slight fall in September 2012, has completely recovered and continues to grow.

Today, December 28, 2012, the cost of iron ore reached $ 140.75 per ton, against $ 88 in September. A sharp increase in prices provoked Chinese metallurgists, which began to actively purchase raw materials against the backdrop of positive expectations of steel consumption in 2013.

A sharp jump in prices was a serious challenge for raw materials that previously believed that a slowdown in the growth rate of the Chinese economy will lead to a decrease in demand and the cost of raw materials that this country consumes. “We predict that iron ore prices in 2013 will be at 130 dollars per ton, while in the first half of the year the prices will be slightly higher than in the second,” said the head of the Macquarie commodity studies Colin Hamilton.

The Chinese metallurgists plan to purchase 778 million tons of iron ore abroad next year, which will be 6.9% higher than this year, so China will have about 65% of the global volume of iron ore supplies.

By the way, according to Westpac Banking experts, iron ore prices may well increase by June 2013 by another 26% and reach $ 170 per ton.