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Saturday, February 18, 2012

FMG expects iron price to stay at USD 140 per tonne

Saturday, 18 Feb 2012

Fortescue Metals Group expects iron ore prices will remain around USD 140 per tonne in the short-to-medium term as Chinese demand remains strong but little new supply comes onto the market.

Fortescue reported that it had achieved an average realised sales price of USD 139 per tonne during the six months to December 31, down from USD 149 per tonne in financial 2010/11.

Mr Nev Power CEO of FMG told reporters that "Our core market in China remains strong and the iron ore index price has remained around USD 140 per tonne.”

He said that "Long term, China's growth is forecast to be stable around the nine per cent mark and we don't see significant new supply to come into the market in the short term, and, therefore, expect the price to remain in that range."

Head of marketing Mr David Liu said China's steel market should stabilize after a recent lull.

(Sourced from AAP)

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