High spot iron ore prices baffle steel firms

Iron ore spot prices reached a record high this week, triggered by moves from global mining firms to enhance their position in ongoing negotiations, industry insiders said.

"The fact that traders are stockpiling steel on the prediction that steel prices will rise next year caused the market to soar," said a sales manager at Beijing Ye-Steel Trading Co.

China's steel stocks hit 12.18 million tons last week, up 109 percent from the same period last year and up 2.88 percent compared to last month, according to Mysteel.com.