However, Vale said in a statement that it "is always open to discuss and negotiate with its clients solutions that could bring mutual benefits, never aiming to take short-term opportunistic benefits, but rather being guided by the concept of a sustainable long-term relationship."

Vale's comments follow recent speculation that it could be switching away from the quarterly pricing system due to pressure from Chinese steelmaking clients, who prefer to purchase ore at the current cheaper spot market prices than on quarterly contract prices.

Iron ore spot prices have declined 8% in the past week and 14% in the past month on weaker demand in Europe and falling international steel prices, according to independent market price discovery services.

Vale, the world's biggest producer of iron ore, said that it considers quarterly pricing a transparent system that provides "an intermediary point that captures the main benefits of two systems: the stability of the former annual pricing and the flexibility of a more liquid pricing."

The quarterly pricing system was introduced in April 2010 after the former annual benchmark system collapsed amid Chinese steelmakers' pressure to buy at cheaper spot prices during the global economic crisis.

Despite the current volatile environment and uncertainties regarding the global short-term outlook, Vale said it strongly believes that the fundamentals for the metals and mining industry remain solid in the medium to long run, and hence there is no reason for structural changes in the prevailing pricing system.

Source: Dow Jones