BHP Billiton Quarterly now using iron ore sales contracts
It was no surprise to hear that BHP Billiton (ASE:BHP) has moved most of its Asian customers to short-term contract for its iron ore from the previous annual contract, which they have been fighting to move away from for years.
A BHP spokeswoman said about the actions, "We will have different pricing solutions in place for different customers. Pricing will be determined by the landed market price in China."
The actual price of the contracts wasn't revealed, as the legalities of contract confidentiality were cited.
Asian steel mills in particular have resisted these changes, as they preferred the stability included with the annual contracts previously used. But they will probably change their minds once they get used to the idea and prices reflect the current market conditions more accurately.
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