One of the three major iron ore giant Vale do Rio Doce statement: indeed with Asian customers reference price of iron ore will be raised to the level of consultations on the European market. In this regard, in China Steel Association said Vale do Rio Doce are halfway through a price increase of this behavior in violation of conventions and trade.

It is reported that world's top three iron ore giants and the world's major steel mills Gonghuo Jia, one year of talks once the negotiations had ended in 2008, Brazil's Vale price increase 65% -71%, and Australia's BHP Billiton and Rio Tinto rose 79.88% -96.5% in between.
CVRD said yesterday that, at present, in consultation with the steel mills in progress, is no guarantee that will eventually reach an agreement on iron ore price adjustment. It is, at present, different types of iron ore in the Asian market were lower than the reference on the European market 11.0% -11.5% lower.
In this regard, China Steel Association Deputy Secretary-General Zhang Jingang introduction, in fact, this year, CVRD reached with the European and Asian steel price increase is the same, the reason for price difference is the historical basis for the formation of different prices making.
While negotiating with CVRD said, but told reporters yesterday that a number of steel prices, steel shipments of iron ore in Brazil sent a ship scheduled to arrive in the port after the Vale side said that does not accept the price increase is not loaded. In this regard, Zhang Jingang said the violation of trade law, because prices have already reached an agreement, Vale do Rio Doce has a sudden price increase. At present, China Steel Association has received a reflection of the various steel mills, and a positive response, but the China Steel Association has refused to disclose coping strategies.
Furthermore, the current iron ore spot prices drop, sea freight rates decline, which began after two months of the fiscal year 2009, the world's iron ore price negotiations in the steel side benefit, Vale do Rio Doce start game now with the Asian steel mills, may lead to iron ore spot prices, as well as sea freight rise, thus changing the situation in the negotiations.
The possible existence of these risks, Zhang Jingang said this was the game in the inevitable price to pay. In addition, for the 2009 fiscal year, rally the world's iron ore price negotiations, is the industry thought the Tamsui River Valley, the main purpose of price increase.