Nippon Steel Corp., the world's second-biggest steel maker, said iron ore price talks with Rio Tinto Group are deadlocked because the supplier is seeking excessive increases. The talks with Rio, the world's second-biggest iron ore exporter are for ore prices for the year started April 1.
Nippon Steel, JFE Holdings Inc., and Posco, Asia's three largest steelmakers, had previously agreed to pay at least 65 percent more this year for iron ore supplied by Brazil's Cia. Vale do Rio Doce, the world's biggest exporter of the raw material.
London-based Rio, which operates mines in Australia, has said it wants a higher price than the Vale agreement because its proximity to Japan cuts shipping costs. Steelmakers are also in talks with BHP Billiton Ltd., which has made a bid for Rio Tinto, over iron ore contract prices.
Source: Bloomberg
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