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Grange prices iron ore pellets off Metal Bulletin data
November 20, 2012 - 10:45 GMT
Metal Bulletin’s weekly iron ore pellet price for 65-66% Fe material has become Australian magnetite producer Grange Resources’ reference price for all iron ore pellet sales to its Chinese customer, Jiangsu Shagang International Trade.
The change will be applied retrospectively to all shipments
made since April 1, the company said on Monday November 19.
On November 16, the Metal Bulletin iron ore pellet price for
65-66% Fe stood at $145-149 per dry metric tonne cfr China.
Under the revised agreement, Shagang's offtake tonnage from
Grange's Savage River production site in Tasmania will be 1
million tpy of iron ore pellets.
"The agreement will put Grange in a strong position to
facilitate the further development of key relationships with
major iron ore buyers," md Richard Mehan said.
"We have a significant cornerstone contract, at market prices,
with Shagang - a major Chinese steel producer - and the ability
to diversify our customer base for products that are
sought-after in Asian markets, as well as to retain some
flexibility to sell into spot price markets," he added.
In March 2011, Grange revised its annual contracts to a
quarterly and monthly basis, shortening contract durations to
reflect market prices more accurately.
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