Vale clause means Q3 iron ore prices to stay at record high

Platts reports Brazil’s Vale (NYSE:VALE) , the biggest iron ore exporter, looks set to enjoy record-high contract prices into the third quarter.

The market news is quoted as saying,

According to Platts calculations based on assessments from March 1 to May 24, contract prices of Vale’s fines and concentrate would fall by between 1.1% and 1.3% from Q2. This implies that the 5% clause will kick-in for the first time since the quarterly pricing mechanism was introduced in April 2010.

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