Vale will increase its iron ore prices by about 35% to $145 a ton in July as part of its move towards quarterly pricing.

Vale Ferrous Metals director Jose Carlos Martins told Brazilian newspaper O Estado de Sao Paulo steel makers would face higher prices when buying from the miner.

Martins said prices at present are well below the spot market price in the second quarter and the new price is expected to recover a large part of that difference, starting in July.

Iron miners are expected to raise prices to bring them in line with spot ore prices following a move away from the benchmark system to the new quarterly system.

The world’s biggest miners including Vale, BHP Billiton and Rio Tinto moved in favour of quarterly pricing.