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.