On April 20, Brazilian mining giant Companhia Vale do Rio Doce (Vale) said it was making long-term commercial iron ore contracts more flexible by offering temporary discounts.
"Currently Vale is receiving 80 percent of sales in cash and 20 percent will be received at a later date while the 2009 benchmark price settlement is concluded," Vale said in a statement.
Vale added, "Provisionally sales prices are the equivalent of the 2008 benchmark price. They will be adjusted according to the outcome of the 2009 benchmark price negotiations."
Annual benchmark price negotiations between Vale and Asian steel mills have in recent years been concluded by April 1; however, this year Vale has said it will only settle after the Australian miners have set their prices.