Iron ore prices remount to $150

In less than one month, the spot prices of domestic iron ore regained the $150 per ton level from the trough of $120, with the MY STEEL Iron Ore Index reaching $151 per ton for 63 percent Fe content material on August 10.

In July China imported 51.2 million tons of iron ore, up 4.03 million tons from June and down 11.85 percent from a year earlier. In the first seven months, China imported 360.41 million tons of iron ore, up 1.5 percent.

Analysts said the recent rise in iron ore prices may send some domestic steelmakers back into losses despite recent modest recovery in steel prices.

The average imported iron ore price in June stood at $139.84 per ton, up $71.7 from a year ago and $11.32 from May. The prices of Australian iron ore have been costlier than any other country except South Africa's over the past three months, a phenomenon that is never seen in the past two decades. This means Australian mining giants have become more involved in the spot market.

It is said BHP Billiton is approaching steel mills with a new monthly iron ore price-settling system. Rio and Vale are also considering plans to shorten the period of their contracts they will sign with their regular customers to better adapt to the changing market. A senior Rio executive said the company is ready to conclude contracts on a quarterly basis, so too its willingness to serve the spot market.