Bloomberg reported that cthat infrastructure projects and stimulus spending by China, the world’s biggest buyer, will boost demand.
The Canberra based Bureau of Resources and Energy Economics said that prices will average USD 106 a metric tonne in 2013, compared with a September estimate of USD 101 a tonne. Prices are set to average USD 128 a tonne in 2012 from USD 126 a tonne forecast in September. Australia’s exports may total 481 million tonne in 2012 and 543 million tonne in 2013, from 483 million tonne and 528 million tonne predicted in September.
Data compiled said that iron ore climbed yesterday to the highest price in more than four months on signs China will rebound after a Q7 slowdown. Industrial output and retail sales rose faster than economists estimated. China imported 65.78 million tonnes of the ore last month, the second highest level after a record 68.97 million tonne in January 2011.
The report said that “Prices in the H1 of 2013 are expected to remain around current levels, while prices are forecast to increase in the Q4 of 2013 in line with an expected increase in steel consumption demand.”
China approved plans including building of roads, subways and extra spending on railways in September.
According to a gauge compiled by The Steel Index Ltd, the bureau’s forecast referred to iron ore with 62% content free on board Australia. The same grade of ore delivered to the Chinese port of Tianjin rose 1.2% to USD 124.90 a dry tonne yesterday, the highest since July 20th.
