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.

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