Iron ore battle nears climax as Argus retires from BHP

By Garry White 630AM GMT nineteen Mar 2010

BHP Billiton

Mr Argus quoted Marius Kloppers, BHP"s arch executive, who pronounced the group"s plans was to "be assertive on growth, to fast-track projects in the backyard and to be rapt to take value of opportunities that are presented by marketplace pricing of commodities." Mr Argus pronounced that this enclosed iron ore and metallurgical spark exported to China and the Asian region.

These commodities, used to have steel, were the usually specific products mentioned.

Talk of Harbinger interest in African Minerals BHP reveals move towards pure iron-ore pricing FTSE 100 enjoys the most appropriate run in over five years BHP Billiton looks for new authority China widens Rio Tinto espionage review

The iron ore benchmark cost takes outcome annually on Apr 1 and the association has been at the forefront of calls for moves to a short-term pricing mechanism. Talks in between miners and member of Chinese steel groups over this year"s benchmark continue. Discussions collapsed last year as China"s steel mills attempted to secure deeper discounts than those negotiated with Japan.

Brazilian miner Vale not long ago indicated that it would enlarge the iron ore prices for done at home buyers by 40pc in Mar and an additional 40pc in April. China is believed to be looking a climb of only 20pc. Because the benchmark cost is significantly next the mark price, BHP has done no tip of the actuality it would similar to to move to some-more short-term contracts.

Mr Argus retires from BHP on Mar thirty and will be transposed by Jacques Nasser, a former Ford arch executive. THE mark cost of iron ore is right away roughly stand in the benchmark concluded last year with Japan.

If it was sole on nearer-term contracts, miners would have sealed in a little of the large gains in mark prices last year.

This benefits miners in a longhorn market, but is disastrous in a bear market, as mark prices should tumble next benchmark