iron ore prices set to increase

Iron ore prices forecast to increase
Tuesday, 17 October 2006. 13:04 (AEDT)Tuesday, 17 October 2006. 12:04 (ACST)Tuesday, 17 October 2006. 12:04 (AEST)Tuesday, 17 October 2006. 13:04 (ACDT)Tuesday, 17 October 2006. 10:04 (AWST)
The head of Rio Tinto Iron Ore has forecast an increase in iron ore prices in the next round of international negotiations, due to get under way next month.

Chief executive Sam Walsh says while the Brazilians settled the price in the last round, Australia is the number two supplier in the world and is in a strong position this time.

"The first part of the negotiations is, in fact, setting the scene, particularly in relation to economics, GDP growth and obviously steel and iron ore usage," he said.

"The market is tight but if we look forward I think the prospects are good for the steel industry, they're good for the iron ore industry and from that viewpoint I would expect iron ore prices would increase next year."