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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (37585)	5/25/2009 3:56:24 PM
From: LoneClone	Read Replies (1) \| Respond to of 195461

UPDATE 1-Brazil's Vale says not started '09 iron price talks Sat May 23, 2009 12:45pm EDT reuters.com (Adds quotes, details, context) SAO PAULO, May 23 (Reuters) - Brazil's mining giant Vale (VALE5.SA)(VALE.N) said on Saturday it has not started negotiations to set 2009 iron ore prices with steelmakers. The world's largest iron ore miner said it would wait until its Australian rivals set new prices before committing to a new rate with its clients. In 2008, it lost out after concluding price talks first. Australians clinched better deals shortly after. "Whatever they decide (on prices), we'll analyze. If it interests Vale, we'll follow. If it doesn't, then we'll see what can be done," said Jose Carlos Martins, Vale's executive director for ferrous minerals. Due to weaker demand for iron ore, Vale and rivals BHP (BHP.AX) and Rio Tinto (RIO.L) are expected to concede cuts to their clients in annual negotiations. Asian clients have said they are seeking aggressive price cuts of up to 40 percent amid cooling demand after several years of hikes. In 2008, Vale obtained increases of up to 71 percent, while Australian firms got 96 percent increases. Martins said current iron prices, which have a discount of 10 to 20 percent over prices agreed last year with clients in Europe, Japan and South Korea, due to weak demand, would be "reasonable" for 2009. He said these "provisional discounts" are 10 percent for clients in Japan and Korea and 20 percent in Europe. In China "nobody is complying with the contract. Most (of the deals) have been done on spot prices," Martins said. But Vale's high-quality iron ore prices were getting a premium of $8-$12 per tonne over spot prices, he added. Earlier this month, Vale said it was prepared to adopt more flexible pricing methods for selling ore, which could usher in a new era for the company, which is known for exclusively selling at annual benchmark prices. With the sharp fall in spot market prices for ore in the wake of the global financial crisis, some steel mills and Australian miners are increasingly interested in doing business linked to the spot market. (Reporting by Roberto Samora, Writing by Inae Riveras)