Brazilian mining giant Vale reached agreements Monday with Japanese and South Korean steelmakers to increase the prices of the iron ore by 65 percent to 71 percent this year.
Vale, the world's largest iron ore exporter, has agreed with Japan's Nippon Steel and South Korea's Posco, that the price of "recognized superior quality" iron ore produced in Carajas is 1.2517 U.S. dollars per dry metric ton Fe unit in 2008, up 71 percent from the previous year, while the price of the iron ore produced in the Southern System is 1.1898 dollars, up 65 percent from 2007,
For the first time, Vale applied different price hikes to the iron ore produced in Carajas, northern Brazil and in Southern System areas, including Minas Gerais state.
The same agreement is expected to be reached with Japan's JFE Steel Corporation, Sumitomo, Nisshin Steel and Kobe Steel later.
"The price increase in 2008 reflects the tight global iron ore market will continue," said Vale.
Source:Xinhua
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