Steel giant ArcelorMittal will pay Vale 28.2% less for iron-ore fines and 44.47% less for lumps during the 2009 contract year, compared with 2008, the Brazilian miner announced on Friday.
The pellet price decreased by 48.3%, Vale said.
The resources giant announced earlier this month it had agreed to cut 2009 benchmark iron ore prices by the same percentages to Japanese and South Korean steelmakers.
Annual benchmark prices for iron ore have historically been negotiated annually in closed-door talks between individual miners of the steelmaking ingredient and their customers in Asia and Europe.
This year, the 'big three' producers – Vale, Rio Tinto and BHP Billiton –have started settling some contracts, but have yet to reach agreements with buyers in the biggest iron-ore consuming country, China.
Chinese steel producers are understood to want a price cut of at least 40%.
Source: Mining Weekly
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