The pig iron industry in Minas Gerais discusses with Vale's formula for the quarterly adjustment of iron ore and prices of raw materials. According to the president of the Association of Iron Industry in Minas Gerais (Sindifer-MG), Fausto Varela, the pig industry is evaluating options for how to readjust and plans to meet with the mining company to address the issue.
Vale raised the contract price of iron ore to pig iron producers in Minas Gerais by 8% on Feb. 1, according to Varela. Contacted by The Associated Press, Vale said through his press office, which does not report percentages of adjustment, because each client chooses the index that is used in calculating the change.
The new pricing system of the ore, which entered into force on 1 April last year, is based on quarterly adjustments, calculated from the average price of the commodity in the spot market (spot) Chinese for three months, one month gap through an index, such as consultancy Platts. According to the chairman of Sindifer, the price of pig iron produced in Minas Gerais is about 5% higher than in December 2010 in sales for domestic and foreign markets. In the middle of 2010, prices of pig iron was about 30% below those recorded in the pre-crisis, according to Varela.
source http://www.foundrygate.com.br/
No comments:
Post a Comment