Asian steelmakers likely to accept iron ore hike

Nippon Steel Corp, the world's second biggest steelmaker, and Asian rivals will probably accept a record increase in iron ore prices from Rio Tinto Group, adding to pressure on profit margins.

Baosteel Group Corp, China's biggest steelmaker, agreed on Monday to pay as much as 97 percent more for Australian ore, sending its shares down 10 percent yesterday. Japanese mills will probably pay the same price, said UBS AG's Atsushi Yamaguchi.

Nippon Steel in April forecast a 41 percent profit decline after accepting a smaller iron ore price increase from Brazil's Cia Vale do Rio Doce, the biggest exporter of the raw material. Steelmakers have raised prices to pass on higher costs to carmakers and builders.