SYDNEY(Commodity Online) : World's third-largest iron ore miner, BHP Billiton on Wednesday agreed with unnamed customers to take a 33 to 44 per cent price cut for contracted iron ore shipments, covering 23 per cent of its total sales volumes.

In a statement issued here, the company however declined to say whether any of its Chinese steel-making customers were party to the agreement. Chinese mills have been holding out for a deeper price cut, arguing that it was a matter of survival for many of them.

Receive $25 free with a Forex Micro account

"The price for iron ore fines will be approximately 33 percent lower than the contract prices agreed in the 2008 contract year," it said.

"The price for iron ore lump will be approximately 44 per cent lower than the contract prices agreed in the 2008 contract year.

"A further 30 pe rcent of BHP Billiton's total iron ore volumes will be sold on a mix of quarterly negotiated pricing, market clearing price (spot market) and index-based pricing. Negotiations for the remaining 47 per cent of iron ore volumes are ongoing."

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook