The biggest iron ore producer of world, Rio Tinto will take decision having risk at reduction of advantage of company from iron ore sales revenue in spot market. Possibility there will be earnings loss of iron ore sale, because result of negotiation between Rio Tinto and world steelmaker company has not been agreed on. As has been reported on steelmaker company in China expects contract cutting the price of a real big iron ore that is 40%-50%. But company mined iron ore can only give iron ore discount 30%-35%.

Following statement of Rio Tinto about sale decision making of iron ore at spot market.

Rio, which said that it was the second largest iron ore producer on a global basis in 2008, added that there “remains some uncertainty in the pricing of spot iron ore despite settlements reached with Asian customers other than the Chinese. The company has thus far settled with Japanese, Korean and Taiwanese customers on prices for its Pilbara Blend Fines, down 33% from 2008 levels and its Pilbara Blend Lump, down 44% from 2008 levels. The Chinese have been pushing for up to a 40% reduction in the fines price.

Rio reiterated 2009 global iron ore production guidance of 200 million tonnes and said the forecast is based on an expected recovery in Chinese steel demand in the H2 of 2009.

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