China Steel: Vale Agreed To Cut 4Q Iron-Ore Shipment Price By 20%-25%
06 Dicembre 2011 - 10:12AM
Dow Jones News
China Steel Corp. (2002.TW) said Tuesday that Brazil's Vale SA
(VALE) agreed to slash its price of iron-ore shipments for delivery
in the fourth quarter by 20%-25%, as the biggest steelmaker in
Taiwan is reducing capacity utilization amid weakening demand.
A China Steel official involved in the talks, who didn't wish to
be named, told Dow Jones Newswires that the Brazilian miner agreed
to price fourth-quarter shipments based on the Platts iron ore
index in the October-December period, instead of using an average
of the June-August period as previously agreed, which was
higher.
Vale supplies around 30% of China Steel's ore needs and wasn't
immediately available for comment.
The official said China Steel is still in talks with BHP
Billiton Ltd. (BHP.AU) and Rio Tinto Ltd. (RIO.AU) over a price
cut. The two Australian miners together supply 70% of its
needs.
The agreement with Vale will be the first of a series of steps
China Steel plans to take amid sputtering global demand.
The company said in November that it was actively seeking to
defer or cut upcoming shipments of iron ore and coking coal from
major suppliers.
-By Fanny Liu, Dow Jones Newswires; +886 25022557;
fanny.liu@dowjones.com