Finance / China
If you would like to subscribe to Corporate Financing Week and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Corporate Financing Week please click on the trial link below.
Iron Ore And M&A
March 2008 | Top StoriesSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
If you would like to subscribe to Corporate Financing Week and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Corporate Financing Week please click on the trial link below.
The growing differential between spot iron ore prices and long-term contract prices is causing delays and frustration between producers and suppliers. Traditionally, iron ore prices would be determined by one of the three major mining companies, Rio Tinto, BHP Billiton, and Vale, which combined have three-quarters of the global market. When the first of these three agreed a long-term contract price with their client, the agreed price would become the industry benchmark and the others would follow suit thereafter. This year, however, this has not happened.