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Raw material costs to rise $150 per tonne this year, Macquarie

March 10, 2010 - 13:27 GMT Location: London

KEYWORDS: raw materials , iron ore , coking coal , Lennon , Macquarie

Raw material costs, including scrap, iron ore and coking coal, will rise by $150 per tonne this year, according to Jim Lennon, Macquarie Research’s executive director of commodities.

Steelmakers will have to accept a huge iron ore price increase, he said. “Vale and BHP want to secure a price close to the current spot market price, or they will just sell on spot,”...

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