Companhia Vale do Rio Doce

1ph,III ES , E- 11'tY ESTGR 7_0

Home > Press Office

RELEASES

CVRD and Baosteel agreement on 2005 iron ore prices

2/28/2005

Companhia Vale do Rio Doce (CVRD), the world's largest iron ore producer, concluded the

iron ore price negotiations for 2005 with Shangai Baosteel Group Corporation (Baosteel),

the largest Chinese steel maker. As an outcome of these negotiations, iron ore prices for

Carajas (SFCJ) and Southern System (SSF) fines, FOB Ponta da Madeira and Tubarao,

respectively, increased by 71.5% relatively to 2004.

Baosteel negotiates representing the Chinese Iron and Steel Association, composed by 13

Chinese steel producers. Agreements between CVRD and those companies involves an

amount of iron ore fines of approximately 35,4 million tons for the 2005 Japanese fiscal

year (from April 05 to March 06).

The magnitude of the price increase for 2005 reflects an unprecedented situation

characterized by the disequilibria in the global metals and maritime freight markets,

which led to substantial prices increases for these products and services during the last

couple of years.

CVRD reinforces its long-term commitment with clients, investing a significant amount of

resources, despite of rising investment costs, in the production and logistics of iron ore.

For 2005, CVRD capex budget allocated US$ 1.7 billion for investments in ferrous

minerals. Currently, CVRD is developing six projects for iron ore production capacity

expansion, which will come on stream between 2005 and 2007.

jn- Press Office

Page 1 of 1

I-FIE;y1 OFFICE I 80 11P11 c-],

7/20/2005

CVRD starts to invest in mineral

exploration in Australia

7/8/2005

m CVRD receives the investment grade

rating

7/5/2005

w CVRD will start the development of the

Vermelho Nickel Mine

6/15/2005

m CVRD and Government of Mozambique

sign agreement for social projects

6/14/2005

e Companhia Vale do Rio Doce announces

the inception of tests with biodiesel in the

Vitoria - Minas Railway

6/8/2005

m CVRD signed Memorandum of

Understanding for study of coal deposit in

Mongolia

Best visualization in 800x600 I R 2005 - Companhia Vale do Rio Doce I All rights reserved.

http://www.cvrd.com.br/saladeimprensa/en/releases/release.asp?id=13772 8/8/2005

 EE-RM/STD-00-550 COMMENT 86

Cornpanhia Vale do Rio Dace Page 1 of 1 

CVRD I BUSINESSES I INVESTOR RELATIOIIS I SOCIAL ENVIRONMEIHAL RESPONSAIIIUTY I WORTH KllownUll PRESS OFFICE IIHI 

Home> Press Office 

RELEASES 

eVRD and Baosteel agreement on 2005 iron ore prices 

2/28/2005 

Companhia Vale do Rio Doce (CVRD), the world's largest iron ore producer, concluded the 

iron ore price negotiations for 2005 with Shangai Baosteel Group Corporation (Baosteel), 

the largest Chinese steel maker. As an outcome of these negotiations, iron ore prices for 

Carajas (SFCJ) and Southern System (SSF) fines, FOB Ponta da Madeira and Tubarao, 

respectively, increased by 71.5% relatively to 2004. 

Baosteel negotiates representing the Chinese Iron and Steel Association, composed by 13 

Chinese steel producers. Agreements between CVRD and those companies involves an 

amount of iron ore fines of approximately 35,4 million tons for the 2005 Japanese fiscal 

year (from April 05 to March 06). 

The magnitude of the price increase for 2005 reflects an unprecedented situation 

characterized by the disequilibria in the global metals and maritime freight markets, 

which led to substantial prices increases for these products and services during the last 

couple of years. 

CVRD reinforces its long-term commitment with clients, investing a significant amount of 

resources, despite of rising investment costs, in the production and logistics of iron ore. 

For 2005, CVRD capex budget allocated US$ 1.7 billion for investments in ferrous 

minerals. Currently, CVRD is developing six projects for iron ore production capacity 

expansion, which will come on stream between 2005 and 2007. 

In, Press Office 

7/20/2005 

CVRD starts to invest in mineral 

exploration in Australia 

7/8/2005 

CVRD receives the investment grade 

rating 

7/5/2005 

CVRD will start the development of the 

Vermelho Nickel Mine 

6/15/2005 

CVRD and Government of Mozambique 

sign agreement for social projects 

6/14/2005 

Companhia Vale do Rio Doce announces 

the inception of tests with biodiesel in the 

Vitoria - Minas Railway 

6/8/2005 

CVRD signed Memorandum of 

Understanding for study of coal deposit in 

Mongolia 

Best visualization in 800x600 I @ 2005 Companhia Vale do Rio Doce I All rights reserved. 

http://www.cvrd.com.br/saladeirnprensa/ enlreleases/release.asp ?id= 13772 8/8/2005