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Iron ore: freight rate fever

AUSTRALIA’s iron ore miners should kill the pig in the next few months by clinching a contract price hike of up to 50% from Chinese steel mills. But talk of the two big Aussie diggers – Rio Tinto and BHP Billiton – securing an additional “location premium” looks fanciful. <b>The Metal Detective, by Stephen Bell.</b>

Stephen Bell

In an ideal world, BHP and Rio would gain a cash benefit from the Pilbara’s proximity to China’s booming steel industry. The Pilbara’s main iron ore competitor – Brazil – is literally on the other side...

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