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12 March 2010


Vale withdraws from China iron ore price talks

Source: Asia In Focus

Brazilian miner VALE SA has quit the 2010 annual iron ore benchmark price talks with China, the National Business Daily reported Thursday, citing an unnamed industry insider in Hebei, a major steel making province in China. The source said Vale could not accept the low price proposed by Chinese negotiators.

However, industry analysts noted Vale's withdrawal could just be a negotiating strategy as Vale also withdrew from the annual talks with China in 2009.

Vale clearly stated its intention to move the benchmark price closer to the spot price, which means an about 80% increase over last year's benchmark level.

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