World's biggest iron ore producer Vale SA said that contract prices for iron ore will rise about 20% in the second quarter from first quarter levels.
Mr Jose Carlos Martins executive director of Vale said at a press conference in Sao Paulo that “The increase will be around 20%, with variations for quality.’
He added that “We now see prices stabilizing at a higher level than last year. Then there could be a new trend for prices to increase at the end of the year.’
He also said “The current pricing system allows producers to better accompany movements in spot market prices. The old system created more speculation, and inventory movements. We're working toward consolidation of the quarterly pricing system.”
In the first quarter of 2011, quarterly prices rose around 8% from the final quarter of 2010.
The quarterly pricing system replaces the former annual benchmark system which was in place for 40 years.
(Source: www.steelguru.com )