Brazilian iron ore giant Companhia Vale do Rio Doce (Vale) has announced the conclusion of its iron ore price negotiations for 2008 with China Steel Corporation (CSC), the largest Taiwanese steelmaker.
Accordingly, the iron ore prices agreed by CSC for Southern System Fines (SSF), FOB Tubarão, have increased by 65 percent relative to 2007. At the same time, due to its recognized superior quality, it was agreed that the price for Carajás iron ore fines (SFCJ) will have a premium of US$0.0619 per dry metric ton Fe unit over the 2008 price for SSF.
Therefore, the new reference prices per dry metric ton Fe unit for 2008 are US$1.1898 for SSF and US$1.2517 for SFCJ.
With Vale's gradual conclusion of its iron ore talks with the leading steelmakers worldwide, all eyes have turned to Rio Tinto which is expected to make a price announcement soon. In a statement last week, the company said it would continue to negotiate to obtain a freight premium, to reflect its proximity to Asia and its major customers.