Brazil's Vale Seeks 20% Extra Rise in Iron Ore

Brazilian miner Vale has emailed Chinese customers to announce it would charge 20% more for iron ore effective 1 September, after originally approaching top Chinese mill Baosteel in mid-August, steel industry sources in China confirmed on Thursday.

If accepted, the demand would bring the increase in iron ore sold by Vale for fiscal year 2008 in line with the higher prices that Australian miners won in July.

But Asian mills are not likely to readily agree, said the sources, who declined to be named citing possible retaliation by Vale.