Bloomberg cited Mr Jose Carlos Martins Ferrous Minerals Director said Vale SA, the world largest iron ore producer is certain to reach a price accord for the steelmaking ingredient this year with Chinese steel mills.

Mr Martins said Vale expects to reach a mutually interesting solution with its Chinese iron ore buyers in 2010 after overcoming 2009 stalemate. Last year, China big steelmakers discarded traditional benchmark pricing after failing to reach accords with mining companies on contract sales.

He said that Vale sold a record 110 million tonnes of the raw material to Chinese buyers in the first nine months of 2009, while European sales fell because of the global economic crisis. Vale intends to keep this year sales to China little changed from 2009 levels as demand recovery in western and Asian markets may tighten supplies, he said.

Mr Martins said “This year going to be different. Vale’s relations with its Chinese clients are very good. We have more than 120 clients spread over all Chinese provinces.”

He said that demand for global iron ore has rebound to pre-crisis levels or possibly higher. Seaborne trade in iron ore may reach 900 million tonnes this year up from 850 million tons in 2008.

(Sourced from Bloomberg)