BlueScope clarifies CVRD iron ore supply arrangements
BlueScope Steel today officially announced a clarification to the press release by the Brazilian
iron ore producer Companhia
Vale do Rio Doce ("CVRD") regarding the contractual arrangements between CVRD and BlueScope Steel.
BlueScope Steel claims that it had entered into
iron ore supply arrangements with four
iron ore suppliers to provide for the company's raw material needs over the next year. The
iron ore supply negotiations between CVRD and BlueScope Steel were concluded in late 2004, and no negotiations have been conducted between the two companies since that time, BlueScope adds.
CVRD's press release refers to
iron ore price negotiations for a total amount of 2.5 million tons of
iron ore fines. In actuality, says BlueScope, the contractual arrangements between the two parties cover only a small part of this overall quantity.