Vale S.A. Moves 90% of its Iron Ore Sales to Quarterly Contracts

Brazil mining giant Vale S.A. (VALE) said on Thursday it had moved 90% of its iron sales volume to quarterly contracts, matching a move by Anglo-Australian miner BHP Billiton (BHP) and increasing  pressure on Rio Tinto (RIO) to replace annual negotiations with more frequent and flexible adjustments to iron ore prices.

In a statement the company announced that it had “reached agreements on a new iron ore pricing regime with [97% of its global clients] , based on short-term market references and price changes on a quarterly basis.”

According to the Rio de Janeiro-based co., the new policy involves a more flexible approach toward iron ore and coking coal pricing.

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

Be the first to comment

Leave a Reply

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.