April 9, 2010
Rio Tinto Limited (RIO) confirmed this morning that it was joining rivals BHP Billiton and Brazilian miner Vale in moving towards quarterly pricing for its iron ore. BHP Billiton recently secured a near doubling in the price it achieved per tonne for its iron ore.
Rio Tinto said it was now negotiating contracts with its customers to supply iron ore priced on a quarterly basis.
Sam Walsh, Chief executive Iron Ore and Australia, said that Rio Tinto’s position reflects the recent structural shift in the iron ore market away from benchmark pricing.
”It is in line with our recent comments that benchmark pricing only works if it reflects market fundamentals, otherwise the system would need to change.”
“As discussions are still underway, no further guidance is possible at this stage.”
At the open Rio shares were up 20c to $80.20.
Filed under:
Materials and Resources, News and Views by egoli
April 9, 2010
Rio Tinto Limited (RIO) confirmed this morning that it was joining rivals BHP Billiton and Brazilian miner Vale in moving towards quarterly pricing for its iron ore. BHP Billiton recently secured a near doubling in the price it achieved per tonne for its iron ore.
Rio Tinto said it was now negotiating contracts with its customers to supply iron ore priced on a quarterly basis.
Sam Walsh, Chief executive Iron Ore and Australia, said that Rio Tinto’s position reflects the recent structural shift in the iron ore market away from benchmark pricing.
”It is in line with our recent comments that benchmark pricing only works if it reflects market fundamentals, otherwise the system would need to change.”
“As discussions are still underway, no further guidance is possible at this stage.”
At the open Rio shares were up 20c to $80.20.
Filed under:
Materials and Resources, News and Views by egoli
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