May 30 (Bloomberg) -- Vale SA will increase iron-ore prices by 35 percent on average, starting July 1, following the company’s new policy to adjust supply contracts quarterly, O Estado de S. Paulo reported, without saying where it obtained the information.

Jose Carlos Martins, Vale’s executive director, said the company’s prices were “well bellow” spot prices in China in the second quarter and that Vale expects to recover a “big part” of that difference in the quarter that begins in July, the newspaper said.

A Vale’s spokeswoman said in an e-mailed statement that the company won’t comment on the price increase reported by Estado.

To contact the reporter on this story: Helder Marinho in Rio de Janeiro at hmarinho@bloomberg.net

To contact the editor responsible for this story: Francisco Marcelino at mdeoliveira@bloomberg.net

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