China Wants 45% Ore Price Cut From Rio; 40% From Vale-Xinhua
May 21 2009 - 3:18AM
Dow Jones News
Chinese steel mills are seeking a 45% iron ore benchmark price
cut from Rio Tinto PLC (RTP) and a 40% cut from Companhia Vale do
Rio Doce (RIO), the official Xinhua news agency reported
Thursday.
The China Iron and Steel Association will soon make a statement
calling for these levels of cuts from last year's benchmark rates,
the report said, quoting Shan Shanghua, the association's
secretary-general.
The Chinese side has called for a cut of about 40%-50% but until
now, have never been specific about how much it would or has
demanded of each miner.
The report didn't specify how much of a cut the Chinese would
ask from BHP Billiton Ltd. (BHP), but both BHP and Rio Tinto got
the same price increase last year of about 88%; in contrast, Vale
got a 65% raise.
The mining majors are locked in negotiations with the Chinese
over iron ore prices.
-By Chuin-Wei Yap, Dow Jones Newswires; 8610 6588 5848;
chuin-wei.yap@dowjones.com