According to a Japanese media report, Anglo-Australian mining groups Rio Tinto and BHP Billiton planned to raise iron ore prices by up to 23% in the July-September period. The Nikkei business daily revealed that the second successive quarterly climb would witness iron ore priced at about 147 dollars per tonne between July and September, which is an increase of 140% on the financial year ended March. The report revealed that Brazil's Vale is expected to follow suit.

The new deal will probably be accepted by the Japanese steel companies, which have consented to discuss prices on a quarterly basis instead of annually from this fiscal year.

A 55% increase in the price of coking coal and a 100% markup of iron ore for the April-June quarter, has been consented by leading steelmakers in Japan. The rest of the world industry takes reference from the prices which are paid by Japanese and South Korean steel giants. It has been notified to auto makers and other large buyers by Nippon Steel Corp and others, that steel prices will be increased and that the pricing period will be reduced.

Shares in Japanese steelmakers, including Nippon Steel and JFE Holdings came under selling pressure on Tuesday.