Researcher UC361.com citing average Platts index prices reported that Rio Tinto Group and BHP Billiton Ltd may ask Chinese steelmakers to pay 11% less for fourth quarter iron ore prices.

Mr Hu Kai an analyst at UC361.com said that prices may drop to USD 129 a tonne in the quarter starting October 1, down from USD 145.30 in the third quarter. The fourth quarter price for contract ore is based on the average index prices of 62% iron ore for June to August minus freight rates.

Mr Hu said that contract prices for 65% iron ore from Vale may fall 8% to USD 133 a tonne in the fourth quarter from the prior three months.

(Sourced from Bloomberg)