According to Companhia Vale do Rio Doce (Vale) CEO Roger Agnelli, the 2009 annual iron ore price negotiations that are usually held in April may be delayed until a later date. Mr. Agnelli said the talks could be delayed by the recent production cuts announced by many steelmakers around the world given the current economic turmoil, which Vale does not expect to improve until at least the second half of next year.
On Monday this week, Vale CEO Mr. Agnelli had stated that Vale was withdrawing its demand for an additional price hike of 12 percent from its Asian customers in the interest of "client relationships", taking into consideration the sagging demand.
Mr. Agnelli stressed that fourth quarter sales might be lower than those recorded in the third quarter due to slowing demand rather than high prices.
As reported by SteelOrbis on October 31, Vale has announced a reduction of 30 million mt per annum in its iron ore production through the shutdown of some mines in the Southern and Southeastern Systems in the state of Minas Gerais, Brazil, effective as of Saturday, November 1, 2008, onwards.