Fortescue inks China iron sales 3% below benchmark

Published: 16 Aug 2009 16:36:21 PST

SYDNEY, Aug 17 - Fortescue Metals Group <FMG.AX>, Australia's No. 3 iron ore miner, has settled second half price contracts with Chinese steel mills at about 3 percent below the non-China benchmark set by larger rivals, the company said on Monday.

The price agreements signed with China's top steelmaker, Baosteel Group Corp <600019.SS>, and the China Iron & Steel Association, covers 20 million tonnes of ore and equates to a price of around $55.50 per dry tonne for Fortescue-grade ore.

Fortescue has also agreed to a lump price of around $61 per dry tonne FOB, the company said.