Anglo Australian mining giant Rio Tinto Ltd has reportedly agreed to a 13% cut in the price it will receive for its iron ore from Japanese steel makers during the fourth quarter.

The Nikkei reported Wednesday that Rio Tinto will receive around USD 127 per tonne for iron ore shipped to the steel makers, with weaker demand from China the primary reason for the price drop.

Bloomberg also quoted Mr Akio Yokoyama spokesman of Sumitomo Metal as saying that “Rio Tinto Group and Sumitomo Metal Industries Ltd. agreed on a 13% cut in iron ore prices to USD 127 per tonne for the October to December period from the previous quarter.”

(Sourced from Market Watch and Bloomberg)