Iron Ore Prices To Rise Sharply: BHP Billiton Chief (BHP)

In a television interview, BHP Billiton (NYSE: BHP) chief executive officer Marius Caliper said that the iron ore prices are likely to rise sharply in the coming months. According to him, forward price for the commodity is currently about 100% higher than the benchmark price. He also said that the rising demand from China is also an important factor.

Iron ore prices are set annually and are mutually decided between the buyers and the major iron ore miners such as BHP Billiton (BHP) and Rio Tinto (NYSE: RTP). Last year the producers were under pressure from Chinese steel mills to cut the prices.