The Japanese and Korean steel company has agreed a contract price of iron ore sales for the year 2009. Iron ore price agreed decreased 28.2% compared to 2008. Iron ore prices agreed by Vale with Japanese and Korean steel companies.

The new price for iron-ore fines is 28,2% lower than that for 2008, while the price for lumps drops 44,47% and that for blast furnace pellets falls 48,3%.

In cash terms, this means that the new prices, for each dry ton of iron unit, are $0,8543 for iron-ore fines from Vale’s south-eastern system, $0,9942 for lump from the same system, $0,8987 for sinter feed from the Carajás system, $1,0094 for lump from the southern system, and $1,1043 for blast furnace pellets. (Vale’s iron-ore operations in Brazil are
grouped into ‘systems’, based on their geographical location.)

There is iron ore price agreement between the company’s iron ore mines of Brazil and Japanese and Korean steel companies, motivate mining companies to increase exploration iron ore mine.

Steel industry in Brazil will increase kapasita steel production to meet market demand are likely to have increased. Arcelor-Mittal is the biggest steelmaker in Brazil plans to increase its production capacity from 80% during the third quarter of this year. The steel company hopes will be a rise of steel product demand from automotive industry.

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