Australian
iron ore producers have agreed to a price cut of upto 5% for the export contracts to
Japan, putting themselves under further pressure due to the sharp increase in the dollar. The major producers
BHP Billiton and
Rio Tinto have been trying to keep the current prices bringing forth the fact that supply might be tight due to strong demand from
China. When CVRD of
Brazil concluded business at lower levels in the European market, the producers could no longer hope to keep their last year contract prices. New prices are at the levels of $28.28 per dry long ton with a decrease of 2.4% for fine
iron ore and $36.13 per dry long ton with a decrease of 4% for premium lump
iron ore. New price for
BHP $ 10.80 down 20 cents and
Rio Tinto $35.13 down by 43 cents.
BHP ve
Rio Tinto are also troubled by the 7.7% drop inthe steam coal prices. It is now hoped that due to the high demand, hard
coking coal prices rise sharply.