Baosteel agrees to 65% iron ore price increase from Vale

Another Asian steelmaker agrees to new iron ore contract prices

By Staff -- Purchasing, 2/22/2008 8:31:00 AM

Chinese steel giant Baosteel has agreed to accept a 65% iron price increase from Brazil’s Vale for beginning April 1. The price for Vale’s South System iron ore fines will rise by 65%, as did other Asian and European steelmakers earlier this week.
According to a Baosteel statement, the premium for higher grade iron ore fines from Vale’s Carajas mine will climb to 6.19¢/dry metric ton unit (dmtu). The new price for South System fines to Baosteel will be $1.1898/dmtu and Carajas fines will be $1.2517/dmtu.
As reported on Purchasing.com earlier this week, various steelmakers are already increasing prices for steel mill products in anticipation of the iron ore contract price increase, while market experts say the increase will impact U.S. steel prices as well.

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