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In a report by Reuters referencing the original story by the Nikkei Business Daily newspaper, the cuts by the unnamed steelmakers would save the industry around 3 trillion yen ($US33.66 billion) and bring iron ore and coal prices in line with their deals back in 2007.
According to the Nikkei, the steel majors were aiming for metallurgical coal at $US100 per ton, and iron ore at $US50/t.
The newspaper said iron ore kings Vale, BHP Billiton and Rio Tinto would be hit by the new requested prices as early as next week, with coal prices also to be negotiated with the latter two companies.
The ongoing global financial crisis has not only triggered a crash in the high commodity prices of last year, with coking coal then reaching unprecedented levels of $US300/t, but has caused a wave of steel production cuts around the world from November.
