Iron ore prices 2008

Reports are coming in that the forthcoming round of iron ore price negotiations could result in some quite large price increases once again.

The main issue seems to be the very tight iron ore market today. Price negotiations are therefore expected to move one way only - and this is upwards.

Some analysts even consider that the 2007 / 2008 iron ore price rise - in percentage terms - could even be as high the 71% rise seen around March 2005.

To read more on this topic, visit http://www.busrep.co.za/index.php?fArticleId=4033500&fSectionId=552&fSetId=662

blogger@steelonthenet.com

Rebar steel futures contract

In a similar move to those planned by some of its international rivals, the Dubai Gold and Commodities Exchange (DGCX) launches its own rebar futures contract on October 29. Each contract is to be for 10 tonnes of reinforcing bar. Three delivery months are to be offered at launch: initially December 2007, January 2008 and February 2008. Additional delivery months and a weekly delivery cycle are to be added as market liquidity grows.

The reinforcing steel bar contract is the first of four contracts targeted at the steel supply chain that the DGCX plans to issue. The others are for stainless steel, for flat products and for freight.

The New York Mercantile Exchange is expected to launch its steel futures contract later this year. The LME aims to start trading its steel futures contracts in April.

For full report on the DGCX rebar contract, see http://www.arabianbusiness.com/498917-dgcx-launching-steel-futures-next-month

blogger@steelonthenet.com