News Room - Steel Industry

Posted on 24 Jun 2008

BHP Billiton Wins 85 pct Iron Ore Price Hike with China

After months of negotiating with China's top steelmakers, BHP Billiton Ltd won an 85 pct increase in the benchmark price for iron ore following a similar deal made by Anglo-Australian peer Rio Tinto Ltd, the Wall Street Journal reported. 

The price increase, which tops the 65-71 pct rise that Brazilian rival Vale received earlier this year, is retroactive to April, it said.

Marius Kloppers, chief executive of BHP, was quoted as saying that the negotiations' outcome validates arguments about the value of Australian iron ore and incorporate the "freight premium."