Wuhan Iron & Steel Group, China's third-biggest steelmaker, will buy iron ore from Venezuela at a long-term contract price this year, paving the way for a "China Price" separate from what the big three global miners are charging.
The price of iron ore from Corp Venezolana de Guayana (CVG) for 2010 will be $20 per ton lower than what Vale is charging in the third quarter, saving at least 400 million yuan ($59 million) for Wuhan Steel this year, the company said in a statement on its website on Wednesday.
Wuhan Steel imported 480,000 tons of iron ore from Venezuela in 2009.
The world's top three miners - Vale, Rio Tinto and BHP Billiton - broke the 40-year tradition of selling iron ore on an annual contract basis this year and opted for a quarterly pricing system.
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