Iron ore prices to be higher in 2006

Business Day today reports that after last year's 70% increase in iron ore prices, Chinese iron prices for the year to March 2006 could see further increases, of perhaps 10% to 15%. According to the report, Rio Tinto's view is that Chinese demand will continue to grow strongly. Macquarie analysts are also reportedly expecting 15% rises in fob iron ore contract prices next year, because of strong demand from China and Japan.

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