Thursday, September 23,
Wuhan Iron & Steel Group, China’s third biggest steelmaker, will buy Iron ore from Venezuela at a long-term contract price in the coming qurter, paving the way for a “China Price” separate from what the big three global miners are charging.
The price of Iron ore from Corp Venezolana de Guayana (CVG) for 2010 will be USD20/tonne lower than what Vale is charging in the third quarter, saving at least 400 million Yuan for Wuhan Steel this year.
“This is the first-ever contract under the ‘China Price’ and we hope to apply this to other countries to diversify our resource supplies,” said Bai Fang of Wuhan Steel. The Iron ore will have ore content of 65%.
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