RIO DE JANEIRO, Feb. 18 (UPI) -- Brazilian iron ore producer Vale do Rio Doce says Japanese and South Korean steel mills will pay 65 percent more for its ore this year, it was reported Monday.
Vale do Rio Doce said Nippon Steel of Japan and Posco of South Korea will pay $78.90 per ton beginning in April, Mercopress reported. That will mean iron ore prices will hit a record high for the sixth straight year.
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Mining analyst Peter Strachan says the Japan/Korea agreement will raise the bar worldwide.
"I think once one of the major customers capitulates and says 'OK we're prepared to pay this price,' then the others will usually fold in behind that and that will set the bench mark for others to set going forward," he said.
