Brazilian mining giant
Vale, the world's biggest
iron ore producer, said last Friday that it might reduce its
iron ore prices by 10 percent this October, from $150/mt to $135/mt.
The decision, made as part of a quarterly revision of market prices, comes after a fall in demand in China, the top global customer.
Such a reduction would also slightly reverse a 170 percent increase in
iron ore prices seen this year in response to strong for raw material.
Vale's announcement has been reflected in spot prices for
iron ore in China.
Nevertheless,
Vale's revenues from sales of
iron ore this year should still be more than double last year's figure, reaching around $30 billion (AU$33.89 billion).