Iron Ore-Major indexes scale fresh 8-month high

Spot iron ore prices in Asia stayed strong on Frcarbon black from tyre pyrolysisiday as sustained demand from Chinese steel mills ahead of the Lunar New Year next month and tight supplies pushed key indexes to their highest since May 2010. An Indian trading firm sold this week 40,000 tonnes of ore with 63.5 percent iron content at $180 a tonne, including freight, a level last seen in April, and traders say there may be enough momentum to lift prices closer to $200.

Inquiries from Chinese buyers have increased on concern floods in Australia may also disrupt iron ore shipments from the world's top miner. "We're getting a lot of inquiries from the Chinese side. There are offers at $181 to $183 a tonne, but I haven't heard a deal above $180," Dhruv Goel, managing partner at iron ore trader Steelmint in India's eastern state of Orissa, told Reuters. "The Chinese might not be getting supplies from Australia because of the flood. They want to play safe, they don't want to take risks. "I am hearing from the market that Chinese buyers are ready to pay more than $180 for 63.5/63 cargo," said Goel.