WISCO and Venezuela agree iron ore contract price for 2010

Wednesday, 21 July 2010 17:41:28 (GMT+3)   |  
       

At the end of June this year, Venezuela sent a delegation to China to carry out negotiations regarding iron ore contracts with Hubei Province-based Chinese steelmaker Wuhan Iron and Steel Co. (WISCO). The WISCO and Venezuelan representatives have lately reached agreement on contract iron ore prices for the whole of 2010. Compared with the iron ore price Japan and South Korea contracted with Vale, the price agreed by WISCO and Venezuela is $20 lower. This means that WISCO could save up to RMB 400 million (about $59 million) by importing iron ore from Venezuela in 2010.

Compared with Brazilian iron ore, Venezuela's iron ore is of a high grade. In October 2009, International Economic and Trading Corporation, a subsidiary of WISCO signed a seven-year contract with the CVG mining company of Venezuela, for a total volume of 40 million mt of iron ore. In December 2009, WISCO received priority from CVG as regards iron ore purchases.

The Venezuelan contract reduces the pressure on WISCO from the three main mining giants - Vale, BHP Billiton and Rio Tinto - and also eases the pressure on the Brazilian ship route.


Similar articles

Iron ore prices drop by over $9/mt week on week, mood remains bad

28 Mar | Scrap & Raw Materials

Goa government to ease policy for liquidating iron ore dumps lying on private land

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

Brazilian high-grade iron ore price declines sharply in two days

27 Mar | Scrap & Raw Materials

Daily iron ore prices CFR China - March 27, 2024

27 Mar | Scrap & Raw Materials

India’s JSPL takes operational charge of iron ore complex in Venezuela

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

Vale selected to begin award negotiations for US briquette plant

26 Mar | Steel News

Daily iron ore prices CFR China - March 26, 2024

26 Mar | Scrap & Raw Materials