Japanese Steelmakers led by Nippon Steel Corp. agreed Monday to a 65 percent increase in annual iron ore prices, a steel company official said, setting a global benchmark for prices of the raw material used in steelmaking.
The increase will apply for the 12 months from April 1 after Tokyo-based Nippon Steel, Japan's biggest mill, settled an accord with Brazil's Cia. Vale do Rio Doce, or CVRD, said the official, who declined to be named because the talks are confidential.
Iron ore prices will rise for six years to a record as China increases output of steel, boosting earnings at the three biggest exporters, CVRD, Rio Tinto Group and BHP Billiton Ltd. Prices may rise as much as 70 percent because of a global supply deficit, Credit Suisse Group said last month.