Vale finally confirms to rise iron ore prices in Asia
After a week of disarray, Vale yesterday confirmed it will hold negotiations with its Asian customers to raise annual contract price for 2008-09. Prices for its Asian customers are currently 11.0% to 11.5% lower than those for the European and the company intends to lift Asian prices to offset the gap. On the other hand, Chinese mills rejected to follow Vale’s demand as attempt to change annual contract that already concluded since several month ago.
Furthermore, some of Japanese mills determine to oppose Vale’s demand as well. However, Nippon Steel told that they may have to accept some increase because Vale may stop supplying if the company totally refuses the price rise.
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