On 30 March, Vale reaches agreement with Nippon Steel and Sumitomo Metal Industries to supply a 65% Fe Itabira fines at $100-110/tonne fob during in April-June. The new agreement between Vale and Japanese steel mills is the end of annual iron ore contract price system. Previously, BHP Billiton and Rio Tinto have already switched iron ore contract to quarterly or shorter basis. The new quarterly prices is accounted about 90% hike over the last year’s annual contract prices of $55.53/t and close to an average spot price for 62% Fe fine ore of about $126/tonne cfr China.
