Rio Seeks Higher Prices Than Vale in Iron-Ore Talks |
| Bloomberg - Feb 18, 2008 |
Rio Tinto Group, the world's second- largest iron-ore producer, is seeking bigger price increases from Asia steelmakers than Brazilian rival Cia. Vale do Rio Doce.
Rio wants to receive a ``freight premium'' to reflect the lower cost for customers in China, Japan and South Korea of shipping ore from ports in Australia rather than Brazil, it said today in a statement distributed by the Regulatory News Service. Nippon Steel Corp., JFE Holdings Inc. and Posco today said they agreed to a 65 percent increase in Vale's prices from April 1.
This ``could mark the end of the `one price fits all' settlements of the last few decades,'' Michael Rawlinson, head of mining, resources and energy at Liberum Capital Ltd. in London, wrote today in a report. A full recovery by Rio of the freight premium to China would mean a ``massive'' 154 percent boost in ore prices, he said.
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- Posted: 2008-02-18 09:35:44
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