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Sept 8 (Reuters) - Anglo-Australian mining giant Rio Tinto has agreed with major Japanese steelmakers to reduce its iron ore price for October-December by roughly 13 percent from the previous quarter, the Nikkei business daily reported.
The new iron ore price will be roughly $127 a ton, which is still higher than the price for April-June, the paper said.
Steelmakers, who have already agreed on a 7 percent cut in the coking coal price, will see the first price declines for both iron ore and coking coal since April 2009, according to the report.
Weaker demand in China, the world's No. 1 steel producer, has been the prime factor in driving down prices, the daily said.
Japanese steelmakers are expected to work out similar deals with Brazil's Vale SA and Anglo-Australian natural resources giant BHP Billiton, the report said.
If domestic crude steel output in the October-December quarter is on par with the 28 million tons estimated for July-September by the Ministry of Economy, Trade and Industry, the cuts will likely lower the sector's materials procurement costs by about 70 billion yen ($832.1 million), the Nikkei said.
($1=84.12 Yen)
(Reporting by Soham Chatterjee in Bangalore; Editing by Prem Udayabhanu) Keywords: RIOTINTO/ (soham.chatterjee@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: soham.chatterjee.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Sept 8 (Reuters) - Anglo-Australian mining giant Rio Tinto has agreed with major Japanese steelmakers to reduce its iron ore price for October-December by roughly 13 percent from the previous quarter, the Nikkei business daily reported.
The new iron ore price will be roughly $127 a ton, which is still higher than the price for April-June, the paper said.
Steelmakers, who have already agreed on a 7 percent cut in the coking coal price, will see the first price declines for both iron ore and coking coal since April 2009, according to the report.
Weaker demand in China, the world's No. 1 steel producer, has been the prime factor in driving down prices, the daily said.
Japanese steelmakers are expected to work out similar deals with Brazil's Vale SA and Anglo-Australian natural resources giant BHP Billiton, the report said.
If domestic crude steel output in the October-December quarter is on par with the 28 million tons estimated for July-September by the Ministry of Economy, Trade and Industry, the cuts will likely lower the sector's materials procurement costs by about 70 billion yen ($832.1 million), the Nikkei said.
($1=84.12 Yen)
(Reporting by Soham Chatterjee in Bangalore; Editing by Prem Udayabhanu) Keywords: RIOTINTO/ (soham.chatterjee@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: soham.chatterjee.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.