Chinese group Wuhan Iron & Steel said Wednesday it has inked a deal with Corp. Venezolana de Guayana to buy iron ore at a lower price than what Brazil’s Vale is charging. Without giving details, the steelmaker said the price for the Venezuelan commodity “will be at least US$ 20 less” for each ton, compared with what Vale is charging Asian customers in the third quarter.
In the same statement, Wuhan says the deal “is the first-ever contract under China prices” and “a significant starting point to move away from control by the world’s top three mining giants”.