China's top steelmaker said Friday it agreed to a 65 percent rise in ore prices with Brazil's Vale, in a move following agreements by other Asian producers for a global benchmark on the raw material.
"Baosteel reached a consensus on the base price for internationally traded iron ore in 2008 with VALE the world's largest iron ore producer," the Shanghai steel maker said in a short statement.
Baosteel agreed to a 65 percent rise in Carajas powdered ore with the new price for 2008, the statement said.
As China's largest steelmaker, Baosteel traditionally sets the price for the nation's other steel producers for internationally purchased iron ore.
Prices of iron ore, a key material to make steel, have soared in recent years due to growing demand led by a construction boom in fast-growing China and India.
Japan's largest steelmaker, Nippon Steel, and South Korea's POSCO said Monday they jointly reached an accord with the Brazilian firm for the fiscal year starting April 1.
Under the accord, Nippon Steel and POSCO agreed to buy Itabira fine ore — a standard type of powdered ore — at a record 78.89 dollars per tonne from Vale, up 65 percent from a year earlier.
