Spot iron ore $US110 a tonne compared with the Australian contract price of $US52 a tonne; crude oil continues to trade above $US80 a barrel: analysts predict contract price rises up to 40pc for iron ore in 2008-09

Spot iron ore [Indian spot at port India, free on board] was trading at more than $US110 a tonne, compared with the Australian contract price of $US52 a tonne, according to Stephen Wyatt in Shanghai, writing in The Australian Financial Review, (8/10/2007, p. 23).

Coal still rising: Coking coal was about $US150 a tonne, compared with $US98 a tonne, the contract price. Crude oil continued to trade above $US80 a barrel, just shy of its $US84 high last month. Copper rose to a 12-month high and lead soared almost 10 per cent to a record. Wyatt observed the fact that market prices for coal and iron ore were trading so much higher than the annual fixed 2007-08 contract prices pointed to the real possibility of significant increases in 2008-09 contract prices.

2008-09 contract prices: Negotiations for 2008-09 contract prices would begin over the next month and analysts had forecast rises of:

• up to 40 per cent for iron ore;

• 30 per cent for coking coal; and

• 20 per cent for thermal coal.

The Australian Financial Review, 8/10/2007, p. 23