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
In March 2011, Grange revised its annual contracts to a
quarterly and monthly basis, shortening contract durations to
reflect market prices more accurately.