Fortescue Says Prices Slightly Weaker Than Last Quarter
May 27 2009 - 9:37PM
Dow Jones News
Fortescue Metals Group Ltd. (FMG.AU) said Thursday it is
currently selling its iron ore at levels above spot prices but
below the average price achieved in the third quarter.
The Perth-based miner said aggressive spot shipment marketing by
BHP Billiton Ltd. (BHP.AU) and Rio Tinto Ltd. (RTP) is straining
market pricing at a time when benchmark prices are being settled in
annual negotiations.
"Nevertheless, we are achieving prices above the spot rates for
similar products but a little weaker than our last quarter
announced average price," Fortescue said in a presentation
slide.
Fortescue said last month that it had been selling its ore at
interim price averaging between US$60 and US$70 a dry metric ton
during the third quarter, as it awaited the settlement of a new
benchmark price.
The miner said in its presentation Thursday that Rio Tinto's
settlement with Nippon Steel Corp. (5401.TO) translated to a
freight-on-board price for Fortescue's Rocket iron ore fines
product of about US$57.25 per dry metric ton.
Fortescue said Chinese iron ore imports remain very strong and
its customers are still buying all the ore it can produce.
-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094;
alex.wilson@dowjones.com