magnetite producer Grange Resources Ltd. has opted to use
AMM sister publication Metal Bulletins
weekly iron ore pellet price, 65- to 66-percent metal content,
as its reference price for all iron ore pellet sales to
customer Jiangsu Shagang International Trade Co. Ltd.
The change will be applied
retrospectively to all shipments made to Zhangjiagang,
China-based Shagang since April 1, Grange Resources said
65- to 66-percent metal content pellets stood at $145 to $149
per dry tonne c.f.r. China on Nov. 16.
Under the revised agreement,
Shagangs iron ore pellet offtake tonnage from
Granges Savage River production site in Tasmania,
Australia, will be 1 million tonnes per year.
"The agreement will put Grange
in a strong position to facilitate the further development of
key relationships with major iron ore buyers," Grange managing
director Richard Mehan said.
In March 2011, Burnie,
Australia-based Grange revised its annual contracts to a
quarterly and monthly basis, shortening contract durations to
better reflect market prices.
A version of this article
was first published by AMM sister publication Metal