Brazilian mining company Vale SA, the world's largest iron ore exporter, may start the yearly iron ore contract price negotiations with Asian steel producers early next year, several months later than usual. The talks in question normally start in November.
According to company president Roger Agnelli as reported by Brazilian sources, due to the growing demand from China, Vale is likely to increase its iron ore prices for 2010, and the company is currently seeking more market data before the start of negotiations.
"I think it's going to be a positive year and iron prices are showing a tendency towards increase, but I do not know by how much," Mr. Agnelli stated.
Vale's president also said that the depreciation of the dollar against other currencies, including the Brazilian real, will influence the price of the commodity for 2010.
Last week J.P. Morgan estimated that iron ore prices would likely rise 20 percent next year, 30 percent in 2011 and a further 10 percent in 2012.