On February 2, one Australia iron ore businessman close to Rio Tinto, BHP Billiton told to reporters that Rio Tinto had completed the first round of negotiation with Japan, S. Korea, and Rio Tinto demanded that the 2010 iron ore long-term agreement price will be increased by around 40% on the basis of 2009 price.
The aforesaid Australia miners said that in the beginning of 2010 iron ore talk, Japan, S. Korea’s steel enterprises had identified the uptrend in iron ore price, so the discussing point is at the aspect of increase extent.
One head of some iron ore trade state-owned enterprise told to reporters that currently, Baosteel has represented China’s steel enterprises to initiate the iron ore negotiation. Inner Baosteel also basically agree with the increase trend, and the talk faces greater pressure.
Reporters learned from one insider that China side’s price bottom is an increase of lower than 30% in the talk, ranging from 20% to 30%.
Additionally, the aforesaid person also told to reporters that China side still insists on the long-term agreement pricing mechanism, but BHP Billiton made the effort to spread the index pricing trying to associate with the spot market trend.
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