Australian
iron ore giant
BHP Billiton has adjusted its
iron ore prices for
China, with its price increasing from $155/mt published in January to $168/mt FOB. Considering the $7/mt average freight fee to transport
iron ore from
Australia to
China, the CIF cost of
iron ore will be $175/mt.
The second quarter prices of Brazilian miner
Vale and Australian miner
Rio Tinto are due to be published in March. According to the quarterly pricing system, these miners' Q2 prices will be based on average
iron ore prices in December, January and February. The average
iron ore price for this period according to Platts Index is $173-178 CIF, up nearly $30/mt over the price of $148/mt for Q1, indicating that Q2 contract prices will increase.
In line with rising costs, steel mills in
China have been raising their finished steel prices. On February 14, major Chinese steelmaker
WISCO increased prices of its main finished steel products by margins in the range of RMB 200-400/mt. The producer's wire rod prices rose by RMB 200-330/mt, its
HRC prices increased by RMB 200-400/mt, its
CRC prices moved up by RMB 100-300/mt and its HDG prices increased by RMB 200-350/mt.