BHP Billiton Sets New Ore Pricing Agreements

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(Caixin Online) BHP Billiton, the world's largest miner, said it has reached agreements with most of its Asian customers on a new iron ore pricing system with closer links to the spot market, replacing the 40-year-old system based on annual contracts. Chinese steel makers have yet to accept the new arrangement.

After years of lobbying for a more flexible pricing mechanism, BHP said on March 30 that it has agreed with a "significant number" of Asian steelmakers to sell iron ore based on shorter-term pricing and the Cost Insurance and Freight price (CIF).