Vale seeks second increase in 2008 iron ore prices with Asian buyers

摘要

Brazil's Vale said September 9 it is negotiating price increases for iron ore currently sold to Asian clients on top of already agreed term contract prices for 2008 to bring them in line with prices charged to European buyers. “Currently, reference prices for Asian clients are 11% to 11.5% lower than prices for Europe, depending on the type of iron ore,” Vale said in a statement. Vale said negotiations are ongoing and there is no guarantee they will be successful in raising prices, which were determined in February this year with steelmakers in Japan, Korea and China in annual price negotiations for the fiscal 2008 year started April. Vale charged Asian customers lower prices than European steelmakers because of increased freight costs from Brazil compared to the shorter route across the Atlantic to Europe but freight rates for dry bulk vessels have recently plunged.