AXcess News: Soaring Iron Ore Prices Push Steel Rates Higher
27 June 2008 - 8:00AM
Marketwired
NEW YORK, NY (TSX-V: DOX) iron ore drill results on its
Carmelita property in Chile.
China's Baosteel agreed to a 96.5% hike in the cost of iron ore
from Rio Tinto yesterday, which falls on the heels of a 65% rate
hike by Brazil's Vale to other Chinese steel mills.
Mining major BHP Billiton has indicated that will drop annually
priced iron ore contracts in favor of an external reference
index-correlated pricing system after its current agreements
expire. The news was released Tuesday in London. China has already
indicated that it may boycott BHP iron ore purchases as a
result.
Steel billet jumped 2.5% on the LME to a record-setting $1,250
per tonne Thursday.
While steel mills are shuddering over the rise in iron ore
costs, Canadian junior exploration mining company, Dorex Minerals,
Inc., couldn't be happier after revealing earlier this week that
its drilling program located within the "Iron Belt" at the south
end of the Atacama Desert, Chile showed an average iron ore value
of 5.2% across a 92.6 meter mineralization area. Dorex's President,
Peter Walton, said, "We're encouraged by the results."
Walton noted that while only seven drill holes were made, the
consistent findings were bullish enough to warrant further
exploration, though Dorex may find new interest in participation
should iron ore prices continue to shore up steel's record setting
price on the London Metals Exchange.
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