Vale (Nasdaq:VALE), BHP Billiton (NYSE:BHP) Should Follow Rio Tinto's (NYSE:RIO) Price Hikes

The increase in iron ore contract prices by Rio Tinto (NYSE:RIO) should result in iron ore producers like Vale (Nasdaq:VALE) and BHP Billiton (NYSE:BHP) following their its footsteps.

It also indicates it could be a sign of bullishness in the industry.

Canaccord said, "Global miner Rio Tinto (NYSE:RIO) recently raised Q1 iron ore contract prices for Chinese steel mills by approximately 7% from Q4 levels. The new price of - $139/ton f.o.b. would be up - $10/ton from the current level. We conclude the price hike by Rio Tinto is likely to be followed by other big iron ore producers, such as Vale (Nasdaq:VALE) and BHP Billiton (NYSE:BHP)."

RIO was trading at $71.43, up $1.16, or 1.65 percent, as of 11:49 AM EST. Vale was trading at $34.70, up $0.79, or 2.33 percent. BHP was at $91.66, up $1.86, or 2.07 percent.