Rio Tinto-Baosteel price rise a good sign – Vale
June 24, 2008
June 24th (Reuters) – The healthy increase in prices for Rio Tinto (RIO.L: Quote, Profile, Research) iron ores to be paid by China’s Baosteel indicates a strong demand on the market, Roger Agnelli, president of Brazilian miner Vale (RIO.N: Quote, Profile, Research)(VALE5.SA: Quote, Profile, Research), said on Tuesday.
Agnelli said at an event in Sao Paulo that the breaking of the so-called benchmark precedence system is a positive sign.
Traditionally, Vale has signed the first term price increase of the year with some of the larger steel producers and the rest of the global iron ore and steel industry has followed suit.
Earlier in 2008, Vale signed 65 to 71 percent price increase agreements with Chinese steel companies, but on Monday, Baosteel agreed to pay Rio Tinto up to 96.5 percent more for iron ore.