It is reported that, ahead of the 2010 iron ore price talks, the Brazilian mining company Vale has signed an independent agreement with several Chinese mills on iron ore freight charges for the coming three to four years, with the charges in question 20-30 percent lower than normal rates. The move is said to be aimed at strengthening Vale's position in the Chinese market.
Vale has consistently been making efforts to expand its market share in China, particularly after the proposed Rio-BHB joint venture. The Brazilian mining giant is trying to boost its iron ore exports to China by setting up several distribution centers in Asia, building its own ore carriers and discussing new business possiblities with Chinese mills.
However, Vale does not appear to be in any hurry to begin iron ore price negotiations with the Chinese mills. Company president Roger Agnelli lately stated that Vale may start the talks early in the New Year.