Vale promised to sale iron ore to China with the provisional price

August 26 MetalBiz--According to the foreign reports, Vale did not negotiate with China' s steel mills on iron ore benchmark price of 2009, but it promised to make deliveries with the provisional price.

In April this year, Vale agreed China' s steel mills to ship goods with 20% cut from the benchmark price of 2008 until the new benchmark price settled. However, because China refused to accept the 33% reduction concluded by Rio Tinto and Japan-S.Korea steel manufacturers instead reached a 35% cut agreement with FMG, which predicted that the negotiation between China' s steel mills and the three miners seemed to crack.

At present, Vale also sold iron ore to China in the spot market. Everything is in good state and no need to negotiate. Vale stated that China's steel mills began to replenish inventories from the end of Q1 and the beginning of Q2. Now the capacity utilization rate is close to 100%.