BHP Billiton increases its iron ore prices for China

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.