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The CVRD will implement a new iron ore pricing policy

Release:2012-9-18 9:30:01  Hits:1571


World Brazilian mining giant said in a communique issued, the company has recently introduced a new trade policy, enacted in iron ore prices and sales methods will be more flexible in the 23rd. Vale
CVRD communique released after the disclosure of the company has notice issued to customers at home and abroad ore prices reported in the Brazilian media day. The communique said that the CVRD did not give any notice to the capital markets on the prices of their products. But it does not indicate whether the media reports as has customers issued new prices plans.
According to the Brazilian economy professional newspaper "value" reported CVRD to customers in March issued a notice, the company decided to replace the mode of a year to develop the benchmark price, the new iron ore to iron ore index pricing system from April 1 prices rose by more than 100%, the highest grade Carajas iron ore fines from last year's reference price of $ 57 per ton rose to $ 122.20, an increase of 114.38%, the implementation of the time from April to June this year. The CVRD notice explained that the new price list is developed based on the average price of iron ore in the first two months of this year, $ 125.90 per ton.
Brazil, a large steel mills confirmed receipt of the the CVRD notice, the notice states that the details of the price and the new price adjustment. The official said the steel mills anonymity notice they received last week, has yet to make the decision whether or not to accept those terms. However, CVRD communique did not disclose any figures or price increases, saying only that the results of the new trade policy will be published in the quarterly reports in accordance with the law.
Messages stimulation by iron ore prices rose more than expected by the market, CVRD preferred stock price the day in Sao Paulo stock market rose 2.6 percent to 48.55 reais per share (U.S. $ 27.3), while the the market index rose only 0.5%.