ThyssenKrupp Steel Sees Iron Ore Bill Down More Than A Third
May 26 2009 - 8:16AM
Dow Jones News
ThyssenKrupp Steel AG expects it will be able cut its iron ore
bill by considerably more than one third in ongoing negotiations
with its suppliers, a spokesman for the steel unit of German
industrial conglomerate ThyssenKrupp AG (TKA.XE) said Tuesday.
"We haven't yet reached an agreement, but we expect our iron ore
prices will decline by considerably more than one third, including
shipping costs," the spokesman said.
Earlier this month, ThyssenKrupp Chief Executive Ekkehard Schulz
said the company was aiming to halve iron ore prices in
negotiations with its suppliers.
The spokesman's comments came in response to a deal struck
between Anglo-Australian miner Rio Tinto PLC (RTP) and Nippon Steel
Corp. (5401.TO) that cut iron ore fines prices for the Japanese
steelmaker by 33%.
He declined to specify when the talks with iron ore producers
will be concluded.
"Talks could end pretty soon, but they could also drag on for
several weeks," he said.
The Rio Tinto-Nippon deal is the first this year and could
become the benchmark for the other two big miners, BHP Billiton
Ltd. (BHP) and Companhia Vale do Rio Doce (RIO), which are
continuing negotiations with steel mills.
Company Web sites: www.thyssenkrupp.com
www.thyssenkrupp-steel.com
-By Jan Hromadko, Dow Jones Newswires; +49 69 29 725 503;
jan.hromadko@dowjones.com