On Tuesday's Brazilian blue-chips index, preferred shares of Vale SA rose +2.6 percent and ordinary shares rose +3.4 percent, following a report that the world's largest iron ore producer will adopt a new pricing system that will result in higher prices.
Brazilian newspaper Valor Economico reported that the company sent a note to customers regarding plans to use market pricing based on Platts' Iodex index instead of the benchmark pricing system that has been used for decades. According to the report, the new prices, which could reflect an increase of up to 90 percent, will be in effect from April 1 until June.
Additionally, Vale will raise the price of Carajas sinter feed from last year's reference price of $57/mt to $122.20/mt, according to Valor's report.