hopefully something nice out of the bleak day

Analysts predict iron ore price rise.

Rio Tinto Ltd and rival BHP Billiton Ltd, the world's second and third largest iron ore producers, are in line for a seventh consecutive annual price rise for the bulk commodity, analysts say.

Goldman Sachs JBWere are predicting an 18 per cent plus price rise for Australian iron ore "fines" in the Japanese financial year starting April 1, 2009, after annual contract talks are concluded.

Demand for the steel making commodity continues to be driven by the rapid urbanisation of China and other developing nations, including India.

"Can iron ore contract prices rise at a time when spot iron ore/steel/scrap prices are all falling and global steel production growth is losing momentum?," Goldman Sachs asked in a client note.

"Our answer is "yes" - it has happened before and can happen again."

The brokerage said that the supply-demand dynamics for high quality seaborne iron ore are robust enough for the large contract suppliers - BHP Billiton, Rio Tinto and Brazil's Vale - to secure a seventh consecutive annual price rise.

BHP Billiton and Rio Tinto this year settled on a 79.88 per cent increase in the price of iron ore fines and a 96.50 per cent increase in the price of iron ore lump with Asian customers.

The rise was the sixth annual increase in contract prices for the steelmaking commodity.