Bloomberg reported that the world’s biggest iron-ore producer Vale SA is not negotiating annual contract prices with steelmakers and is selling on the spot market. Vale, which in recent years has sold almost exclusively through contracts, confirmed the spot sales for the first time.
Mr Jose Carlos Martins ED of vale SA told that “Vale can quite easily survive on spot market sales.”
He said that “Vale chose to pass on talks because of last year’s problems when BHP Billiton and Rio Tinto did not follow us. We would not be cornered again.”
Mr Martins added that he did not know if Vale would reach an agreement with steelmakers on prices for annual supplies of iron ore.
He said that a settlement will occur between Australian miners and Asian buyers before the end of June, when Vale will review the situation.