Commodity Online
MELBOURNE: BHP Billiton has announced it had reached agreement with China's Baosteel on increase in price for iron ore deliveries for the contract year commencing 1 April 2008.
A spokesman for BHP Billiton clarified to Commodity Online that In percentage terms they represent a 79.9% increase for fines and a 96.5% increase for lump
The following prices apply to all of its long-term supply agreements for deliveries in the contract year with Baosteel--Yandi Fine Ore Newman Fine Ore US cents 144.66 per dry metric tonne unit and Newman Lump Ore US cents 201.69 per dry metric tonne unit.
President BHP Billiton Marketing, Tom Schutte said: "We note the recent 2008 contract year price settlement of a major supply source for Australian iron ore with Baosteel. We are pleased to have also reached agreement with Baosteel at the prices announced today. We will now seek to settle agreements with the remainder of our customers under existing long-term supply agreements both in China and other countries."
Chief Executive Ferrous and Coal, Marcus Randolph added: "Together with our positions in metallurgical coal and manganese, our iron ore business gives us a leading position in the supply of commodities to the steelmaking industry. We are happy to have been able to settle the prices announced today with one of our most important customers and we've been particularly pleased with the spirit in which both Baosteel and BHP Billiton undertook negotiations.”
