JAPANESE steel makers have accepted a 96.5 per cent increase in iron ore prices from Rio Tinto, according to a report.
The Nihon Keizai Shimbun reported from Tokyo in its online edition today that the Rio deal, with Nippon Steel, JFE Steel and other leading Japanese steel makers, was struck Monday for fiscal 2008 shipments.
Rio (ASX: RIO: quote) set its first price hike a week ago, when it secured an 85 per cent increase in contract iron ore prices with Chinese steel maker Baosteel. The hike includes a new freight premium to reflect cheaper freight costs faced by Chinese mills buying from Australia rather than Brazil.
Today’s report from Tokyo added that BHP Billiton is expected to offer similar prices for Australian iron ore.
It said Japan's steelmakers import about 60 per cent of their iron ore from Australia, adding that the latest price hike follows deals struck with Brazilian iron ore miners in February for 65 percent price increases.
Japan imports nearly 20 per cent of its iron ore from Brazil.
Prices are negotiated on a annual basis.
the australian
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