Credit Suisse Group AG said that Vale SA the world’s largest iron ore producer, may increase prices about 90% if the company adopts a new pricing mechanism based on a Platts index.

Mr Ivan Fadel a Sao Paulo based analyst in a report to clients said that “Vale is currently pushing for a change in the iron ore price mechanism to quarterly based index pricing. The idea is to use an index that could accurately reflect current market conditions, so buyers and sellers would be purchasing the product at a fair price.”

A Vale spokeswoman in Rio de Janeiro declined to comment.

(Sourced from Bloomberg)