Monday, Aug 01,
Brazil’s Vale will introduce a new pricing system for iron ore pellets to reflect the market value of the product in a better way. The new pricing model includes a quality premium for each additional percentage of ferrous content above the 62% spot market reference and a “conversion premium” to reflect supply-demand, Vale said last Friday. “Although this change will not necessarily be translated into material price variations, its focus is to ensure that relative prices will be expressing more properly the market valuation of the different qualities of pellets, being an important tool to signal customers’ preferences, thus allowing us to better meet their demand,” Vale said. Vale’s average pellet price increased 13.6% from the previous three months to $206.07 per tonne in the second quarter.
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