Ganfeng begins production at Goulamina lithium mine in Mali
The project is one of the largest lithium mines in Africa.
The world’s number one iron ore producer Vale is considering shifting from iron ore pricing based on the previous quarter’s prices to levels more aligned with the spot price the company’s chief executive said on Tuesday.
The Brazilian company’s new willingness comes after more Chinese steel mills seek to postpone shipments or default on contracts as spot iron ore prices drop from historic highs above $170 to levels of around $150. BHP, Vale and Rio Tinto control nearly 70% of the 1 billion tonne annual iron ore seaborne trade and dominate price talks which in the past were characterized by secretive negotiations and annual contracts.
A market source on Monday told Reuters that Vale (NYSE:VALE) could eliminate a clause in its quarterly contracts such that steel makers could buy ore slightly cheaper.
MINING.com reported last week global number one miner BHP Billiton (ASX:BHP) plans to create a new, more transparent system for pricing iron ore called Global Ore by the end of the year or early next year.
Despite the recent slump in prices MINING.com reported at the end of September the big 3 iron ore miners see no China weakness and believe iron ore imports could climb 60% to 1 billion tonnes.
The situation today marks a dramatice shift in the dynamic between iron ore producers and Chinese steel mills. At the end of August MINING.com reported iron ore miners were calling the shots as China steelmakers’ profits melted away.
4 Comments
Mcstarv
had to re-read the headline..lol
Riksand
I would love to meet the people who can tell vale to follow proper protocol.
Zliv
Someday, the price may rise up again. But the spot transcation is good for control risks.
http://www.mineralcrusherplant.com
JK
Interesting choice of words in headlines-had to dismiss Xrated image REAL quick.
Come-on, from $60 dollars a ton a year ago to $170+ with no increase in production costs, there has to be a logical adjustment as the demand slows down. Even if the price falls back to $60 dollars a ton, the majors will still make money-but will have extra infrastucture to ramp up output quickly due to investment to double output.