Vale May Change Shipment Prices to Reflect Spot Iron

Platts reported Vale SA (SAO:VALE5) is considering changing iron ore shipment prices to match spot prices.

As quoted in the market news:

Vale is seeing how the swaps market is evolving, while it agrees to move most customers away from the quarterly lag price system for term contracts.

Trading company analysts point out that the pricing shift would need more risk management, and increase administration as a known fixed price for a three-month period is lost.

Click here to read the full Platts report.