Japan July-September Iron Ore Prices Up 23% -Nikkei

16th Jun 2010 23:15

TOKYO (Nikkei)---The two Anglo-Australian mining giants have agreed with Japanese steelmakers on iron ore prices of around $147 per ton for the July-September period, about 23% higher than the previous quarter, the Nikkei reported in its Thursday morning edition. This represents an increase of roughly 140% from prices for all of fiscal 2009. BHP Billiton and Rio Tinto notified the steelmakers earlier this month of the prices they sought, based on spot prices for Indian iron ore bound for China in the March-May period. The agreed-on prices are just about what the resource producers had proposed. The steelmakers and Brazilian mining giant Vale SA are expected to settle on similar prices through their negotiations. Major Japanese steelmakers have already agreed to pay $225 per ton for coking coal, up 12.5% from the previous quarter. For the April-September half, their total expenses for iron ore and coking coal will balloon by about Y900 billion on the year. In light of higher costs for raw materials, Nippon Steel Corp. (5401.TO) and Toyota Motor Corp. (7203.TO) have agreed to lift steel prices for the April-September half by almost Y20,000 per ton. Negotiations between steelmakers and large-lot buyers are expected to move forward now that the two industry leaders have reached a deal and materials costs for the fiscal first half have become known. (END) Dow Jones Newswires June 16, 2010 18:15 ET (22:15 GMT)