December 6, 2011 / 1:58 AM / 8 years ago

China Steel, Vale agree 23 pct iron ore price cut-source

TAIPEI, Dec 6 (Reuters) - Taiwan’s China Steel has agreed a 23 percent cut in iron ore prices for October-December versus June-August with Brazilian miner Vale , a source with direct knowledge of the situation said on Tuesday.

“We have reached an agreement with Vale at the end of November,” said the source, who asked not to be identified due to the sensitivity of the matter.

The agreement prices ore at $130 to $140 per tonne, the source said.

“We are also expecting to reach an agreement with Rio Tinto later this month. With BHP, it will not be easy for them to agree with any price cuts,” said the source.

The global steel industry is facing weakening demand and falling prices amid the global economic slowdown and China’s tightening of its property market. (Reporting by Faith Hung; editing by Jonathan Standing)

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