Brazil-based Vale is offering discounts on shipments of iron ore as a way to lure Chinese buyers, local media reported Thursday.
Growing the supply to Asia’s biggest economy also means gaining upper hand in pricing, reports said.
Recently, Rio Tinto and Australia’s Fortescue Metals Group have cut prices for lower-grade iron ore and Vale is now reportedly offering some Chinese customers a $2.50/mt discount, including cost and freight, for 62-63 percent grade standard sinter feed for third-quarter contracts.
In the first five months of 2014, iron ore shipments from Australia rose by 34 percent, while those from Brazil increased only 10 percent.