According to Shanghai Securities News reported that delays in the international iron ore negotiations outstanding, together with the market downturn, iron ore pricing system has a more complicated situation. 21, one of the three major mining company Vale do Rio Doce issued a statement the company said in 2009 iron ore contract discount will be taken to the provisional implementation of such a flexible manner, that is, 80% of the price paid in cash and another 20% of the purchase price will be in 2009 after the end of the year to pay the price negotiations.

CVRD said the bond will be realized in 2008 as a interim charge of the yardstick costs, in 2009 after the end of the yardstick charge dialogues will be supported on the effects of their adjustment. As is customary, CVRD and Asian hard metal costs will be the yardstick charge dialogues in the April 1 each year, but have not observed any of the prevailing negotiations. The past year in the new charge is not deliver and demand boundaries are pre-released last year reconciled a long ADPL costs, but the market downward spiral this year, mine was to make concessions.

CVRD Zhu, head of China said it would desert the long-HS charge first right to converse the price. "We are the motor, and now we plan to back the." Zhu said, the financial gathering will advance this year to 25% lessening, while advancing sales efforts in China. He trusts that CVRD's yield more competent in China, as more large-scale prospecting financial gatherings a cost superiority is looked frontwards to to cost about 100 million tons of steel ore deliver will be more competent manufacturers in lieu of.

It is appreciated that the first quarter of CVRD's metal ore to Europe fallen by nearly half, while metal ore trade items to China expanded by almost 40%, because of its iron alloy mills and China marked several little and medium-long agreement for the provide of ore Association.

In detail, it is furthermore the CVRD excavation business in Australia to pursue the trading strategy. According to acquainted causes, the present excavation business in Australia to China Steel's sales scheme was "long-term affirmations on iron alloy, 80% of improvement to non-agreement is 60% of families, non-agreement is the culmination of the client, or a new affirmation to signal the affirmation iron alloy mills, excavation businesses are at the identical time location market sales, a lone suggested, nearly tender, bigger than the rudimentary is to get a cargo. "

Association in accordance with the 2008 prices of the year long, Australia 63.5% of the powder grade ore FOB prices for 91.6 U.S. dollars / ton, 76 U.S. dollars for Brazilian ore / ton. Tang Qi, general manager of Wuhan Iron and Steel Group, Lin said that the end of last year also if the Chinese steel mills in 2008 in accordance with the Association of the long procurement of iron ore prices will not survive.