Rio Signs Iron Ore Contracts with Asian Steelmakers

Rio Tinto subsidiary Hamersley Iron has settled its iron ore contract for 2009 with a number of Asian steelmakers.

Hamersley has signed contracts with South Korea’s POSCO and Taiwanese steelmakers CSC Dragon.

The price for the 2009 contract for Pilbara blend fines and Yandicoogina is 97 cents per dry metric tonne unit (dmtu), and Pilbara blend lump has been settled at 112 cents dmtu.

Rio Tinto Iron Ore chief executive Sam Walsh said that pricing negotiations are usually tough and this year was no exception.

“We continue to negotiate with our remaining customers, the bulk of whom are in China. We believe the settlements achieved to date demonstrate that customers appreciate the certainty of price and volume that the benchmark system ensures,” Walsh said.

On 26 May Rio agreed a 33% discount rate cut for supplying fine iron ore to Japan’s Nippon Steel, in one of the biggest deals to set the benchmark price.

By staff writer