* Iron spot prices soaring on strong demand from China * Quarterly system helped Vale boost profits
SAO PAULO, Feb 25 (Reuters) - Brazilian mining giant Vale expects iron ore prices to rise by around 20 percent in the second quarter, a company director said on Friday. Vale, the world's largest iron ore miner, has seen its profits soar since it replaced the annual benchmark pricing system with a quarterly system based on a three-month average of the spot market prices for iron ore.
Jose Carlos Martins, Director of Marketing, Sales and Strategy, said prices would rise around 20 percent, without providing details about what the final price would be. Iron was trading around $184 per tonne on the spot market on Friday .IO62-CNI=SI after soaring above $190 in recent weeks on heavy demand from China and tight supplies out of
India.
India.
The second quarter price will be based on the average spot market prices for December, January and February, according to Vale's pricing system.
Data provider The Steel Index (TSI) last year said Vale's first quarter ore prices would rise four percent from the
previous quarter to around $140 per tonne for ore with 65.5 percent iron content. [ID:nL3E6MU04H]
previous quarter to around $140 per tonne for ore with 65.5 percent iron content. [ID:nL3E6MU04H]
Reuters calculations in December showed the price for the first quarter would likely be $149 per tonne. [ID:nTOE6BT05G]
The company is in discussions with a group of banks for a $3 billion revolving credit facility that would be used for
general corporate purposes, Chief Financial Officer Guilherme Cavalcanti said.
(Reporting by Guillermo Parra-Bernal;editing by Sofina Mirza-Reid)
The company is in discussions with a group of banks for a $3 billion revolving credit facility that would be used for
general corporate purposes, Chief Financial Officer Guilherme Cavalcanti said.
(Reporting by Guillermo Parra-Bernal;editing by Sofina Mirza-Reid)
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