An official at China Steel Corporation (CSC), the largest integrated steel producer in
Taiwan, has said that Brazilian
iron ore mining giant
Vale has agreed to slash its price for
iron ore shipments for delivery to CSC in the current quarter by between 20 percent and 25 percent, as reported by Taiwanese newspaper Taipei Times. Meanwhile, Reuters has reported that CSC has agreed a 23 percent cut in
iron ore prices for delivery in the fourth quarter with
Vale.
Vale's new
iron ore price for CSC at US$130-140/mt is the first reported quarterly contract price based on spot rates for the current quarter, instead of being based on the average price for the three-month period ending one month before the start of the new quarter - as under the previous pricing formula.
It is reported that CSC is also in talks with Australian miner Rio Tinto with a view to achieving a reduction in
iron ore prices.