Posted on 24 Jun 2008
Baosteel, which negotiated on behalf of
Prices will be 144.66 US cents for per dry metric tonne unit
of Pilbara blend fines and Yandicoogina fines and 201.69 US cents for per dry
metric tonne unit of Pilbara blend lump.
Baosteel and Rio Tinco, the world's third largest iron ore
producer, agreed on the price hike after talks that "maintained
traditional pricing mechanism and normal market order, and kept the long-term
friendly cooperation between the upstream and downstream sectors", the
China steel giant said in a statement.
The agreement represented the sincerity from the two sides
to maintain the traditional pricing mechanism and was a result of the joint
efforts of the responsible businesses, according to the statement.
"Chinese steel firms will support Rio Tinto to increase
investment and output to meet market demand," Baosteel said.
Baosteel agreed as early as in February on a 65 percent
price rise for iron ore imports from Brazilian miner Vale, the world's largest.
Rio Tinto and larger rival BHP Billiton have then required
for a "freight premium", claiming that it costs less to ship iron ore
from
Chinese steel makers have accepted huge price rises for six
consecutive years, driven up by huge increases in demand.
The country's crude steel output more than doubled to 490
million tons in 2007 from 220 million tons in 2003.
