Iron ore price negotiations – CVRD to maintain key spot

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Jun 2008

It is reported that despite recent iron ore price hike negotiated by Rio Tinto, iron ore mining giant Vale would continue its leader position in global iron ore trade. Mr Roger Agnelli CEO of CVRD told the local Estado news agency that Vale would maintain its position as a key player in the iron ore market, despite the recent breakdown in the benchmark pricing system and Rio Tinto's possible tie up with BHP Billiton. Mr Agnelli said that "Vale, alone, is bigger in iron ore than Rio Tinto and BHP together. So we have a very strong position in the international market. It is practically impossible to ignore the size and strength of Vale in this market."
Mr Angelli also said that "The prices of minerals and principal global commodities remain elevated. Demand continues to be very strong, primarily in Asia. But the higher prices garnered by Rio Tinto meant an end to the traditional benchmarking system.”
He however added that "It needs to be seen whether other Chinese steelmakers will follow this price hike deal with Baosteel as well as whether Japanese steelmakers will also go along with the increase. But the market tends to have a single price. For now, we are content to observe this development."

Source: Steel Guru