Vale to meet Chinese steelmakers
Brazil's miner Vale, world's biggest iron ore producer, intends to meet with Chinese steelmakers next week to ask for a second price raise this fiscal year. Vale is expecting to increase prices for Asian mills to reach same level as European steelmakers are paying. The credit crunch is causing a global recession. Chinese steelmakers are using domestic iron-ore supplies after Rio de Janeiro-based Vale halted some shipments.Although long-term contracts with Chinese mills were signed, the parties negotiate prices every year.
Vale settled pricing for 2008 with Japanese and Chinese steel mills in February.It is reported that Asian customers pay 11 percent to 11.5 percent less than European clients. The company is trying to match higher prices charged by rivals Rio Tinto Group and BHP Billiton Ltd.
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