Reuters calculations showed that global miners may trim iron ore contract prices by around 1% in the third quarter following a drop in the average index price from a record high in the second quarter.

Based on Platts index prices for March to May, to which top iron ore miners Vale and Rio Tinto peg third quarter contract prices, the 62% grade averaged USD 176.96 a tonne, cost and freight, down 1.3% from a record USD 179.24 in December February.

Platts in a report, citing Vale's customers in China, Taiwan, Japan and South Korea said that Vale may keep prices of key products unchanged for clients who have agreed with the miner not to adjust prices if a quarterly change is smaller than 5%. It said that those that do not have such a clause in their contracts will see prices drop between 1.4 to 1.5%.

Platts said that Rio Tinto could cut prices by 1.5% with its 62% Pilbara Blend fines likely to be set at USD 168.85 per tonne, free on board, compared with USD 171.35 in the current quarter.

(Sourced from Reuters)