Brazilian iron ore giant Companhia Vale do Rio Doce (Vale) has announced the conclusion of its iron ore price negotiations for 2008 with Ilva S.p.A. (Ilva), the largest Italian steelmaker. The settlement is significant in that it is the second 2008 iron ore price deal to be concluded by Vale with a European producer, following the deal it concluded with ThyssenKrupp.
Accordingly, the iron ore prices agreed by Ilva for Southern System Fines (SSF), FOB Tubarão, increased by 65 percent relative to 2007, while the price for Carajas iron ore fines (SFCJ), FOB Ponta da Madeira, increased by 66 percent relative to 2007.
Therefore, the new reference prices per dry metric ton Fe unit for 2008 are US$1.3441 for SSF and US$1.4060 for SFCJ.
At present Vale is continuing to finalize iron ore deals in Europe.
Vale currently is developing projects to add new capacities of high quality iron ore to meet its clients’ needs, aiming to reach a production capacity of 450 million mt per annum by the end of 2012 through investing in new mines and enlarging its railroad and port infrastructure.