Iron-ore miners last month started talks with steelmakers for supply contracts that will take effect on April 1. In 2005, the three miners secured a record price that was 71.5 percent higher than in 2004, the biggest ever annual increase. Prices will gain another 18 percent in 2006 as China's steel industry, the world's largest, continues to grow, according to Goldman.
``There is no idle capacity at iron ore mines around the globe,'' Mallin-Jones said.
China will need an extra 50 million metric tons of iron ore this year, Mallin-Jones said, citing an estimate from Brazilian miner Cia. Vale do Rio Doce. Chinese steel production rose to 348 million tons last year, Xinhua reported Jan. 10.
BHP Price at posting:
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