End of an era for iron ore pricing?

Judging by comments from Xu Lejiang, chairman of China's Baosteel Group, who said it was likely that “adjustments” would be made to the iron ore pricing system, we may be seeing the end of an era.
Mr Xu is representing China in the annual negotiations with the world’s largest miners of iron ore.
An annual benchmark system has been in place for 35 years, where prices have been set by an agreement privately between supplier and customer, usually starting on April 1 and fixed for a year.
Interestingly, the benchmark price agreed with Japanese steel mills for 2009 was about $62 a tonne. Today’s spot price, according to the Steel Index, is $144 a tonne.  We can see why iron ore producers want to sell nearer to spot prices.
With more ore being sold by the iron ore majors into the spot market, comments from Xu Lejiang are telling for variable pricing to be the wave of the future.
Hence it can be seen why the balance of power has changed during period of high demand for iron ore.
Which can only benefit BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO).

http://www.proactiveinvestors.com.au/companies/news/5990/end-of-an-era-for-iron-ore-pricing-5990.html