CVRD seeks 24 percent price hike

Brazilian mining company Companhia Vale Do Rio Doce (CVRD) confirmed Wednesday that it is asking its Chinese clients for a 24 percent increase in 2006 term iron ore prices. The company did not make any further comment on ongoing negotiations with its Asian and European steelmaking clients. Chinese CVRD client Guangzhou Iron and Steel Corp. Ltd. told press Tuesday that it is still negotiating with CVRD over 2006 term iron ore pricing, and expects the price talks to conclude in April with the result of a 10 percent increase. Industry experts predict the actual price hike will be in the range of 15 percent to 25 percent. Last year, CVRD was able to achieve a whopping 71.5 percent increase in benchmark prices.