The Yomiuri Shimbun, citing unidentified sources, reported that major Japanese steelmakers and Brazilian mining giant Vale SA are expected to agree to an increase in the price of iron ore to about USD 110 dollars per tonne by the end of this month.
As per report they likely will agree to the introduction of a new system under which prices would be reviewed every three months, a move that could lead to a further price hike in July or later.
The new price, which would be applied from April, is almost certain to be a record high, exceeding the previous peak of USD 77 dollars per tonne in fiscal 2008 and almost double the fiscal 2009 price of iron ore.
The report added that Japanese steelmakers also are negotiating prices with two other mining giants and likely will reach agreements on similar prices.