Just when many analysts thought iron ore prices couldn't go much higher there's news of another round of big price rises in the offing.

In fact the huge surge in profits seen in the last half of 2010 will be repeated this half, and especially the June quarter with prices up 40% or more above a year earlier.

BHP Billiton, Rio Tinto and other iron ore exporters are looking for a surprise 20% rise in quarterly contract prices for the three months starting April 1.

The increase is expected to be ratified in the next few days between the companies and steel mills in Asia and Europe.

It will push steel prices even higher (adding to the inflationary pressures across the world). Some steel industry prices have risen 50% for some types of product since November; such has been the pressure on steelmakers.

And they will feed into higher prices for the third quarter, if there's no reduction in spot prices in the next three months.

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