Vale Offers Iron Ore Price Hike by Over 90% to Japanese Steels

Vale, the world largest iron ore supplier, offered the price hike of iron ore by over 90% to Japanese steel makers for the shipment in April-June 2010, according to Japanese major steel maker sources. Vale requires the change of the contract period to a quarter from a year as well. Japanese steel makers are disapproving of both the significant price hike and the quarterly contract system. The price negotiation will run into rough water.

The price of iron ore produced in South Brazil lowered by 28.2% to 85.43 US cents per dry metric ton unit for the shipment in fiscal 2009 (April 2009-March 2010) from fiscal 2008. If surging by over 90% in fiscal 2010, the price exceeds US$ 100 per tonne and becomes higher than the record in fiscal 2008.