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0530 gmt [dow jones] rio tinto (rio.au) agrees to drop in iron ore prices of 33% for fines and 44% for lump with japans nippon steel (5401.to). strikes a price of 97 u.s. cents per dry metric ton for iron ore fines and us$1.12 a ton for lump down from us$2.0169 last year. we believe this settlement is a realistic outcome for both parties - one that reflects the global market for iron ore and the current challenging market conditions facing our customers, rio tinto iron ore ceo sam walsh says. rio shares up 1.8% at a$65.20 on back of news. bhp billiton (bhp.au) up 1.2% at a$34.27 and fortescue (fmg.au) up 5.2% at a$2.65. the question now is whether china will accept the price as the new benchmark; chinese mills have been calling for a cuts of between 40% and 45%. (apw) |
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