iron ore prices are likely to rise sharply

Iron ore prices are likely to rise sharply in the coming months, driven by a
resurgence of demand from China, BHP Billiton Ltd. (BHP) chief executive Marius
Kloppers said in a television interview broadcast Sunday, according to a report
from Reuters.

Kloppers said forward prices stood around 100% above benchmark prices, and
demand from China had increased from the global downturn faster than expected.

"For iron ore, coking coal, the prices that we get today were settled at the
depth of the economic crisis so I think there's probably a good chance that
they will go up from where they are today," Kloppers told the Australian
Broadcasting Corporation for its Inside Business program, which was recorded
Friday, Reuters reported.

Kloppers added that, according to BHP Billiton's forecasts, Chinese steel
production would increase for at least another 20 years, doubling from current
levels by 2025.


Full story: http://www.reuters.com/article/idUSTRE61D0JH20100214