Q2 The iron ore contract price for Chinese steelmakers for the third quarter of the current year has reached $147/mt, up 23 percent quarter on quarter and rising 140 percent compared with the average price in 2009, according to the agreement reached by the big three miners with Chinese steelmakers which are members of the China Iron and Steel Association, China Securities Journal has reported.
As a result, the direct cost of production for domestic mills will be increased by RMB 300-500/mt ($46-77/mt) to RMB 4,100/mt ($629/mt), over the current cost of RMB 3,700/mt ($567/mt).