[Ferro-Alloys.com]  According to Clarkson Securities Ltd, iron ore swaps jumped the most in at least five months on speculation Chinese infrastructure spending will boost demand for the commodity used to make steel.

 

Clarkson data showed that contracts for the first quarter of 2013 rose as much as 8%, the most since at least April, to USD 105 a metric tonne. The price was USD 104.50 in London. Forward freight agreements for Capesizes, the largest vessels hauling the raw material, in the fourth quarter increased 3.1% to USD 8,350, extending the biggest two-day gain since July 3.

 

Mr Alex Gray chief executive officer of Clarkson Securities a unit of the world’s largest shipbroker said that Traders are anticipating increased demand from China, the world’s largest steelmaker, after the government approved infrastructure spending to revive growth. China backed plans for 1,254 miles of roads, nine sewage-treatment plants, five port and warehouse projects, and two waterway improvements, statements on the website of the National Development and Reform Commission showed yesterday.