CSC agrees lower iron ore prices for Q4 with Vale

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.