Australian shares paused yesterday on the edge of the 5,000 point mark for the second time this year.
The ASX200 index ended up 7.2 points at 4960.9 points, while the broader All Ordinaries added 9.1 points to 4983.2 points.
The ASX 200 hit an intra day peak of 4.971 and the close of 4960.9 was the highest this year, topping the previous closing high in mid January of 4951.
The All Ords hit an intra day high of 4,992, the highest since mid January when it hit 4, 984 points.
But a big fall on world markets overnight will see our market down today at the start and probably for the day.
Driving the market yesterday was a series of bullish prices for major commodities, such as copper, oil nickel and iron ore.
BHP Billiton is reported to have secured a 99.7% price rise from its Asian iron ore customers for the April-June quarter, according to Macquarie Bank.
Citing steel industry sources in Japan, the bank’s commodities analysts said that BHP’s $US120.08 a tonne for Pilbara fines iron ore "represents a massive 99.7% rise over 2009 Japanese fiscal year contracts".
Taking into account current freight rates, the settlement would result in Australian iron ore landing at around US$131.50/tonne on a delivered Asia basis, a 22% discount to current spot levels, the bank said.
Macquarie said it understands that prices for BHP’s "lump" iron ore were settled at $US135 a tonne tone for the March-June quarter, 88% above 2009 levels.
Lump ore is preferred by the Japanese mills, fines by mills in China.
BHP said last week that it had reached agreement with a significant number of customers in Asia to move existing iron ore contracts that were previously priced annually onto shorter term pricing arrangements.
But no price details were revealed.
The spot price for iron ore hit $US162 a tonne this week.
BHP shares eased 6 cents yesterday to $44.57, Rio Tinto shares rose 22c to $80.86.
The news comes as copper prices topped the $US8,000 a tonne level in London, leading other metals to their highest levels in 20 months.
Copper prices at the London Metal Exchange on Tuesday rose to $US8,010 a tonne, the highest level since August 2008 and up 90%.
London metal Exchange copper has only traded above the $US8,000 a tonne level during phases of strong economic activity, including the first half of 2008 and briefly in 2006 and 2007.
It hit an-all time high of $US8,940 a tonne in July 2008.
