Vale, Yongfeng Steel Use DCE Iron Ore Price for Spot Supply Deal

摘要

Brazil's resource giant Vale S.A. ("Vale") has agreed with Chinese steelmaker Shandong Laigang Yongfeng Steel Corporation ("Yongfeng Steel") for its iron ore to be priced using the Dalian Commodity Exchange (DCE) iron ore price, according to the DCE's announcement on 14 November. This is the first time an international miner has used a Chinese mainland iron ore futures price for a spot physical trade. Yongfeng Steel has purchased Vale's Qingdao-port-delivered cargo of Brazilian Blend fines (BRBF) priced against the May 2020 iron ore futures contract on the DCE.