Brazil's Vale Lost $1 Billion Revenue From 1st Half 09 Iron Ore Discounts
July 30 2009 - 5:07PM
Dow Jones News
Brazilian mining company Vale SA(VALE) saw a first-half 2009
revenue loss of $1 billion from iron ore contract discounts, Jose
Carlos Martins, director for ferrous minerals and metals, told a
press conference Thursday.
Since the beginning of the year, Vale has been granting many
steel mills a 20% provisional discount on ore term contracts until
a reference price has been agreed on.
Many steel mills have already accepted a 28% discount on Vale's
2008 reference price.
However, Chinese mills haven't yet settled a 2009 benchmark
price and are believed to be holding out for a discount of around
40% of the 2008 contract price.
-By John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086;
John.Kolodziejski@dowjones.com