Fortescue Metals benefiting from improving outlook for iron ore prices, shares climb to highest level since October 2008. Most analysts now tipping iron ore price hikes of about 20% in this year's round of annual contract price talks.
Spot price is supporting the miner's case for a price rise, with the Metal Bulletin Iron Ore Index price for 62% iron ore landed in China up 2% overnight to US$119.85 per metric ton. Spot prices now double the lows seen at the depths of the global crisis. Strong manufacturing data out of China helping drive the spot price higher, as is India's imposition of a tax on its iron ore exports.
