Yes, I think that we'll be paying off that debt quicker than we...

Yes, I think that we'll be paying off that debt quicker than we all thought possible.

Spot prices for export of Indian iron ore fines are continuing to increase with no end in sight.

FOB prices have gained 9% to 15% for various grades in last 20 days since the lat low on December 11th 2009.

On the other hand, yearly comparison reflects 34% to 51% increase in FOB prices for Indian iron ore fines.

Higher freight has further contributed to steep surge in CFR China prices. As per recent reports, the freight component from Indian port to Chinese main port varies between USD 26 per tonne to USD 28 per tonne.

We have heard of a transaction for 63.5/63% grade at USD 118 per tonne CFR China. As per some market players, tightness in spot market is likely to take this to USD 125 CFR soon.

The factors behind tight markets include

1. Restricted supply due to Indian iron ore mess

2. Increased demand of iron ore from Chinese mills due to increased production levels supported by improving domestic steel prices

3. Indian government has further compounded the situation by raising the export duty on iron ore lumps to 10% from 5% and on iron ore fines to 5% from nil equating to about USD 3 per tonne to USD 4 per tonne.

4. Raising of forecast of hike in benchmark price settlement by some of banks and market players is supporting higher prices.