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.