2008 iron ore prices to increase by 65%
CVRD, the largest producer of iron ore in the world, has just reached an agreement with some of the major Asian steel producers to increase 2008 benchmark iron ore prices by 65% to 71%. A typical integrated steel maker uses roughly 1.4 short tons of iron ore pellets to produce a short ton of hot rolled coil. So, a 65% increase in the price of ore translates into a $60 per ton increase in steel manufacturing costs.
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