September 08,
Japan’s Kobe Steel has confirmed a deal with Rio Tinto Ltd for a 13 % cut in the price of Iron ore.
Rio Tinto’s Iron ore division is responsible for the lion’s share of the company’s earnings, contributing $US 4.1 billion in the first six months of 2010.
Speaking from Tokyo, Kobe spokesman Gary Tsuchida said the steelmaker had agreed to the price cut, which is for the three months to December 2010.
Rio Tinto’s iron ore Chief Sam Walsh last week said he expected that December quarter Iron ore prices would fall by 13.3 per cent to $US127 per tonne.
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