Deal reflects growing spot market influence

摘要

Australia's leading magnetite iron ore producer - Grange Resources Ltd - has secured an interim price increase of 69% for its pellets. The agreement was reached with primary customer and cornerstone shareholder Shagang, China's largest private steel mill. This interim arrangement, which will add 50 US dollars/tonne of pellets to last year's benchmark price of 72 US dollars/t, was effective from April 1 this year. Grange chief executive Russell Clark said the deal recognised that the various spot iron ore prices had risen significantly over the past 12 months.