SKorea's POSCO agrees to near-doubling in iron ore prices
South Korean steel firm POSCO said Tuesday it had agreed to pay Anglo-Australian mining giant Rio Tinto at least 80 percent more for iron ore supplies.
By Agencies |
SEOUL: South Korean steel firm POSCO said Tuesday it had agreed to pay Anglo-Australian mining giant Rio Tinto at least 80 percent more for iron ore supplies.
POSCO said the deal with Rio Tinto was effective from April 1 and involved paying 80 percent more for one type of ore, and 96.5 percent more for another type.
"We are still in talks with BHP Billiton of Australia on a price increase," spokeswoman Ko Min-Jin told AFP.
In February POSCO, the world's fourth largest steelmaker, agreed to a 65 percent increase in iron ore contract prices with Brazil's Companhia Vale do Rio Doce, or Vale.
The company has raised the price of steel products to reflect sharp increases in the price of iron ore and other raw materials.
In Sydney, Rio Tinto announced earlier Tuesday that it had reached agreement with all its Asian customers for iron ore price increases of up to 97 percent.
The new settlements are in line with the agreement announced last week with China's Baosteel, which saw lump prices increase by 97 percent and fines prices increase by 80 percent, the company said.
"These agreements are a strong endorsement of the settlement reached last week and reflect the very strong demand for our products across the world's fastest growing markets," said Sam Walsh, chief executive of Rio Tinto's Iron Ore group.
POSCO said the deal with Rio Tinto was effective from April 1 and involved paying 80 percent more for one type of ore, and 96.5 percent more for another type.
"We are still in talks with BHP Billiton of Australia on a price increase," spokeswoman Ko Min-Jin told AFP.
In February POSCO, the world's fourth largest steelmaker, agreed to a 65 percent increase in iron ore contract prices with Brazil's Companhia Vale do Rio Doce, or Vale.
The company has raised the price of steel products to reflect sharp increases in the price of iron ore and other raw materials.
In Sydney, Rio Tinto announced earlier Tuesday that it had reached agreement with all its Asian customers for iron ore price increases of up to 97 percent.
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The new settlements are in line with the agreement announced last week with China's Baosteel, which saw lump prices increase by 97 percent and fines prices increase by 80 percent, the company said.
"These agreements are a strong endorsement of the settlement reached last week and reflect the very strong demand for our products across the world's fastest growing markets," said Sam Walsh, chief executive of Rio Tinto's Iron Ore group.
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