Iron ore and pellet contracts from Brazil's CVRD

Iron ore and pellet contracts from Brazil’s CVRD

According to the statement released by Brazil's iron ore giant Companhia Vale do Rio Doce SA (CVRD), the company has signed two long term agreements with Taiwanese and Brazilian companies for the supply of iron ore and pellets. The first contract is signed with Taiwanese mill China Steel Corporation (CSC) for the supply of 600'000 tons of pellets annually to remain in effect for seven years beginning from 2005. The second contract is singed with Brazil's flat producer Usinas Siderurgicas de Minas Gerais SA (Usiminas) for the supply of 5 million tons of fine and lump iron ore per annum to be in effect for five years. The amount of iron ore that will be supplied to Usiminas constitutes approximately %90 of annual iron ore consumption of the company. As previously reported by SteelOrbis, CVRD had signed iron ore contracts with big mills such as Shanghai Baosteel and Arcelor. It is reported that demand for CVRD iron ore led the price of the product to increase by 10% in 2003 and 18% in 2004. CVRD produced 187 million tons of iron ore in 2003, which indicates a record level in the company history.