BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RTP) are reportedly now offering steelmakers in China the option of monthly iron ore prices, in addition to the recent change to quarterly pricing.
"We will probably get a small proportion of contracted iron ore under the monthly pricing scheme, while the majority remains under the quarterly pricing scheme from Australian suppliers," said a senior official at Shagang, the fifth-largest Chinese steelmaker.
Chinese domestic steel demand is expected to grow at 15.8 percent in 2010, according to Macquarie, but drop to 8 percent in 2011, and 7.5 percent by 2012.
But now with China attacking the inflation related to its property market, it's hard to tell if those figures will remain the same, with some believing it will cause the sector to decline below former estimates.
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