According to The Steel Index, Rio Tinto Ltd
(ASX:RIO) is reportedly gearing up to lift contract prices by 4 per cent in the first quarter of its 2011 financial year, in a move reflecting firmer spot prices in the last three months.
Head of iron ore operations at The Steel Index, Rory MacDonald, told Reuters that Rio may possibly boost the price of its 61.4 per cent grade iron ore to $US133.71 a tonne, excluding freight, up from $US128.76 in the last quarter of the 2010 financial year.
Mr MacDonald says tight supply in the spot market has not been alleviated by producers outside of India, and Chinese demand stayed consistently firm, so prices have improved steadily throughout the three-month period.
Rio Tinto posted a net profit of $7.36 billion in the 2010 financial year.
