Dannemora Mineral AB

Positive market development for iron ore continues

 

The demand for iron ore continues to be strong and the spot price for sinterfines CFR China has now reached a level of 130 USD, which is c. 90 percent higher than reference prices for 2009.

Negotiations on the 2010 prices are not yet completed, but it is obvious that the market analysers expect considerably higher prices for 2010, even if they disagree on how high the price increase will be. According to available predictions, increase  will be between 25 and 50 percent.

For Dannemora this is of course very positive. The increased demand for iron ore, and the fact that the Dannemora ore is considered attractive, has contributed to our success with signing agreements on test deliveries. During the last months we have signed two agreements, with voestalpine (Austria) and Salzgitter (Germany), and we continue to work up a market in Europe.

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