According to Morgan Stanley, the average price of iron ore in 2011 will increase by 12.4% on the basis of a 93.5% increase in 2010, supported by steel demand from China, emerging markets and developing countries.
According to Morgan Stanley analyst Peter Richardson, the average price of iron ore will increase from US$112.7/ton in 2010 to US$126.7/ton in 2011. The price of steelmaking and steelmaking coal will increase by 52% on the basis of 2010 to reach US$196/ton. He also added that China's steel production will continue to increase in 2010, reaching 621 million tons. The recovery of iron ore demand from the traditional seaborne iron ore market center has brought a strong pressure on the supply of raw materials. China's industrialization and market development in emerging countries will continue to stimulate the demand for all types of steel.
The steel index shows that the CIF price of iron ore in China's ports has already stood at US$143.80 per ton. It has climbed 21% in 2010.
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