Australia's Grange Resources (GRR.AX) will lift its iron ore pellets' sales price to BlueScope Steel (BSL.AX) by 107 percent to $150 a tonne for deliveries in the June-September quarter, the company said on Monday.
The size of the increase is based on the previous annual iron ore pellet benchmark price and recognises the rise in spot iron ore prices since March 2010, according to Perth-based Grange.
Since the demise of the traditional annual iron ore benchmark pricing system this year, Grange has been negotiating with its customers for quarterly price reviews.
Shagang Group, China's biggest non-state-owned steel mill, in June agreed to the same increase in third-quarter deliveries. {ID:nTOE65K097]
Negotiations are underway with BlueScope to secure shorter term pricing for the remaining two years of the current supply contract for 800,000 tonnes a year, Grange said.
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