Iron Ore Annual Pricing Contract System Goes To History

In a sign of strength of iron ore demand iron ore producers and Asian Mills  have ended 40 year old annual pricing system and moved to short term pricing. Bloomberg story: Vale, BHP End Annual Ore Talks; Vale Wins 90% Jump.

Iron ore producers have managed to get Asian steel mills to agree that iron ore is priced at spot, 90% higher than the lasts year annual price fixing.

Well, this year negotiations ended early, maybe a sign of over confident Chinese steel makers, or an interlude to new  records in everything connected with the sector.


This entry was posted on Tuesday, March 30th, 2010 at 2:15 am and is filed under China. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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