On June 10, the world's largest iron ore miner Brazil-based Vale S.A. (Vale) announced the conclusion of its iron ore and pellet price negotiations for 2009 with Japanese steelmaker Nippon Steel Corporation (NSC) and South Korean steel giant POSCO. According to Vale's press release, this agreement is followed by the Japanese steelmakers Sumitomo Metal Industries Ltd (SMI), Kobe Steel Ltd (KSL) and Nisshin Steel Co. (NIS).
According to the agreement, the iron ore prices for fines have decreased by 28.2 percent and for the prices for lumps have declined by 44.47 percent as compared to the 2008 benchmark prices.
Therefore, the new reference prices per dry metric ton unit for 2009 are $0.8543 for Southeastern System fines (SSF), $0.8987 for Carajás sinter feed (SFCJ), $0.9942 for Southeastern System lump and $1.0094 for Southern System lump.
The blast furnace pellet price is down by 48.3 percent compared to the 2008 price and the new reference price per dry metric ton unit for 2009 is $1.1043.
At the end of May, Australian mining giant Rio Tinto agreed with Nippon Steel and POSCO on a fine ore price of $0.97 per dry metric ton unit, marking a 33 percent price cut, and on a lump ore price of $1.12 per dry metric ton unit, down 44 percent.