Melbourne (ANTARA News/Asia Pulse) - Japan's Kobe Steel (TSE:5406) has confirmed a deal with Rio Tinto Ltd (ASX:RIO) for a 13 per cent cut in the price of iron ore.

Rio Tinto's iron ore division is responsible for the lion's share of the Japanese company's earnings, contributing US$4.1 billion in the first six months of calendar 2010.

Speaking from Tokyo, Kobe spokesman Gary Tsuchida said the steelmaker had agreed to the price cut, which is for the four months to December 2010.

"We have received a 13 per cent decrease in our iron ore price from Rio," Mr Tsuchida said, without disclosing what the new price was.

Source:
Business in Asia Today - Sept. 8, 2010
published by Asia Pulse

Editor: Ricka
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