Rio Won't Settle Ore Price by April 1, Securities Journal Says...

Rio Won't Settle Ore Price by April 1, Securities Journal Says

By Helen Yuan

March 24 (Bloomberg) -- Rio Tinto Group probably won't reach an agreement on contract iron ore prices with Baosteel Group Corp. by April 1, the China Securities Journal reported, citing Rio's iron ore head Sam Walsh.

Cia. Vale do Rio Doce's agreement with mills to raise iron ore prices by as much as 71 percent for the year from April 1 didn't reflect a ``very tight'' market, the report said, citing Walsh. Rio is demanding a so-called freight premium on shipments, the report said.

China's economy and steel industry have been growing faster than people have estimated, the report said, citing Rio Chief Executive Officer Tom Albanese.

The Asian nation's steel output may rise to as much as 550 million tons this year from 480 million tons last year, the report said, citing Albanese.