Emulation of iron ore producer to get iron ore buyer, especially from the biggest steelmaker company in world still going. Emulation of iron ore producer bothers sale standard price mechanism of iron ore to steelmaker company. Besides emulation of company of iron ore producer, the price of iron ore also influenced by company request of steelmaker. The biggest steelmaker company like China, Jepang, Korea does special negotiation to get iron ore discount.

ArcelorMittal is the biggest steelmaker company has done special discussion with iron ore producer from Brazil, Vale to get iron ore discount. Negotiation done by ArcelorMittal to get positive comments from Vale, so that iron ore producer from this Brazil gives iron ore discount at ArcelorMittal.

Following case of iron ore prices transaction which has been agreed on by iron ore producer company.

Vale said in a statement it lowered the prices of iron fines by 28.2 percent, iron lumps by 44.5 percent and iron pellets by 48.3 percent — the same percentages as its recent cuts to Japanese and Korean steelmakers.

Iron prices are set through a benchmarking system in which steelmakers hold annual talks with the world’s three principal miners – Vale, BHP Billiton (BHP.AX) and Rio Tinto (RIO.AX) — to establish the price.

The system has come under increasing strain due to growing volatility in commodities prices and a trend toward swaps, futures and spot market sales.

Chinese steelmakers are seeking a cut in prices of at least 40 percent over last year’s prices that were set at the height of a five-year commodities boom — though analysts expect they will settle for considerably less.

China, the world’s largest imports of iron ore, is the only steel market in the world set to grow this year.

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