Posted on 08 Jul 2008
Japan steelmakers sign iron ore pact with BHP
Japan's top
four steelmakers, including the world's No.2 Nippon Steel Corp, said they have
struck a deal with BHP Billiton on a near doubling of contract iron ore prices
this business year.
The Japanese companies -- including JFE Holdings Inc,
Sumitomo Metal Industries Ltd; and Kobe Steel Ltd; -- said they signed an
agreement with BHP on Monday to pay 96.5 percent more for iron ore lumps and
79.88 percent more for fine ores.
BHP secured a deal from China's
Baosteel on Friday, saying it would roll that out to other customers in Asia.
The deal matches BHP rival Rio Tinto's pact agreed with
steelmakers last month.
It is the sixth year in a row that iron ore prices have
climbed, for a seven-fold increase since 2000.
The world's biggest iron producer Vale based in Brazil, agreed
in February to a 65 to 71 percent rise. But Rio and BHP had argued that soaring
freight rates made Australian ore much cheaper relative to Brazilian grades due
to the proximity to customers in Asia.
