bhp sets provisional iron ore price

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http://www.interfax.cn/news/12879

BHP sets provisional iron ore price for China mills
by Li Chunlan

Shanghai. February 22. INTERFAX-CHINA - BHP Billiton Ltd., one of the world's largest iron ore producers, is currently selling iron ore to its long-term Chinese users at a provisional price in excess of the 40 percent increase expected by the market for 2010, an analyst told Interfax on Feb. 22.

"At present, the provisional price hike may be between 60 percent and 70 percent from the 2009 level, and only Chinese steel mills that have signed long-term volume contracts with BHP can buy the iron ore at that level," analyst Hu Kai from Umetal told Interfax.

Meanwhile, the 2010 annual long-term iron ore benchmark price talks between Rio Tinto and Asian steel mills have yet to conclude in Singapore. It is expected that the price will rise by 40 percent from 2009's level, according to previous Interfax reports.

Rio and BHP agreed on a fine price of $0.97 per dry metric ton unit for the 2009 contract year with Japanese steel mills, which represented a 33 percent decrease from 2008's level. Although there was no official agreement, Chinese steel mills imported iron ore from the two miners at the same price level through out 2009.