Vale Negotiating Price Reductions in Iron-Ore Contracts
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Vale SA, the world’s largest iron-ore producer, said it’s in talks with customers including ArcelorMittal and China Steel Corp. to cut contract prices after clients pressured the company to revise its pricing system.
Almost 80 percent of the company’s iron-ore sales are based on the current quarter’s price, compared with a previous system that used the period ending a month before the onset of a new quarter, Jose Carlos Martins, head of iron-ore and strategy for Vale, said today in London.