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Iron ore spreads widen as mills rush to grab higher grades

Prices of the commodity have surged since mid-June as reforms in China help to sustain demand for steel

Higher prices of coke - made from coking coal and fed into furnaces to produce iron and remove impurities - may also be boosting a preference for better quality ore.


A FLIGHT to quality in the global iron ore market has exploded the gap between different grades of the commodity, with higher-quality material now costing about twice as much as the lower-grade product.

A tonne of top-tier 65 per cent content ore was about US$100 this...