Spot ore rates may determine steel lobby stance

The spot price of iron ore will climb in the second half of the year if the Japanese and South Korean economies recover, and this possibility may force China to accept the 33-percent discount in full-year ore rates now being offered by global miners, industry experts said.

The spot price might exceed the annual negotiation price in the latter half of this year, driven by other countries' economic recovery and China's turning to iron ore at cash prices, said Yan Song, a fund manager at private equity firm Hao Capital who has been involved in steel industry investment for years.

Iron ore for immediate delivery advanced 4.6 percent to $91 a ton last week, the highest since October last year, according to Metal Bulletin prices.