Thursday, 30 July 2009

BHP Billiton introduces new pricing mechanism for iron-ore

BHP Billiton is to sell a third of its 2009 iron-ore volume under a new pricing mechanism rather than the traditional annual term prices. The system will be a mix of quarterly negotiated pricing, spot market and index-based pricing.

China's steel industry is still in a deadlock over iron-ore negotiations as it demands biggers discounts cuts after Japanese and South Korean mills accepted a 33-percent cut for benchmark ore with Rio Tinto.

While some Chinese steel mills also accepted a temporary 33-percent price cut, the China Iron and Steel Association is playing for even better prices.


WWW.PROACTIVEINVESTORS.COM.HK


No comments:

Post a Comment