Iron Ore-Major indexes scale fresh 8-month highFri Jan 7, 2011...

Iron Ore-Major indexes scale fresh 8-month high
Fri Jan 7, 2011 1:43am GMT

- Spot iron ore prices in Asia were expected to stay strong on Friday as sustained demand from Chinese steel mills ahead of the Lunar New Year next month and tight supplies pushed key indexes to their highest since May 2010.

Inquiries from Chinese buyers have increased on concern floods in Australia may also disrupt iron ore shipments from the world's top miner.

The country's worst floods in at least 50 years has already hit its $50 billion coal export industry which is likely to take months to recover fully. [ID:nL3E7C60ZK]

High-grade iron ore cargoes out of No. 3 supplier India had already been tight due to an ongoing ban on exports at its Karnataka state.

The Platts 62 percent iron ore index IODBZ00-PLT rose $1 to $174 a tonne, including freight, at the close of trade on Thursday, its highest since May 10, 2010.

The Steel Index 62 percent benchmark .IO62-CNI=SI ticked up 30 cents to $171.30 per tonne, its loftiest since May 12 last year.

Metal Bulletin's 62 percent gauge .IO62-CNO=MB edged down 43 cents to $169.05.

Forward swaps extended gains, reflecting investor optimism prices will remain strong, with first-quarter prices all above $170 a tonne.

The Singapore Exchange-cleared January contract rose $1 to $174.50 a tonne on Thursday, February gained $1.45 to $172.70 and March rose $1.80 to $171.80.