Iron ore price hike to feed inflation
Updated
The share price of China's largest steel maker, Baosteel tumbled after it announced it will pay almost double for iron ore this year. Baosteel shares fell by almost 8 percent, against a rising trend in the market index on Tuesday. The price of iron ore supplied by Anglo-Australian miner Rio Tinto will jump on average by 85 per cent after tough negotiations wound up this week. The increased price is expected to flow onto the other major supplier, BHP-Billiton and is certain to contribute to rising inflation in both China and Australia.
Presenter: Karon Snowdon
Speakers: Brian Redican, Senior Economist with the Macquarie Group; Tim Gerrard, Senior Mining Analyst with Austrock Brokers
