Brazil's Vale S.A. (Vale), the world's largest iron ore miner, has announced the conclusion of its iron ore and pellet price negotiations for 2009 with Luxembourg-based steel giant ArcelorMittal, the first settlement of the current year in the European market.
According to the results of these negotiations, the iron ore prices for fines have decreased by 28.2 percent and prices for lumps have declined by 44.47 percent, as compared to the 2008 benchmark prices.
Therefore, the new reference prices per dry metric ton Fe unit for 2009 are US$0.9651 for Southern and Southeastern System fines (SSF), US$1.0095 for Carajás sinter feed (SFCJ), and US$1.0962 for Southern System lump.
In addition, the pellet price has decreased by 48.3 percent compared to the 2008 price, and the new reference price per dry metric ton Fe unit for 2009 is US$1.1384 for blast furnace pellets and US$1.2523 for direct reduction pellets.
On June 10, Vale concluded its iron ore and pellet price negotiations for 2009 with Japanese steelmaker Nippon Steel Corporation (NSC) and South Korean steel giant POSCO, followed by deals with Japanese steelmakers Sumitomo Metal Industries Ltd (SMI), Kobe Steel Ltd (KSL) and Nisshin Steel Co. (NIS). The percentage price decreases for the Asian steelmakers are the same as given above for ArcelorMittal.