It is reported that the Australian iron ore giant
BHP Billiton has lately unilaterally informed some Chinese steel producers that it will be adding a provisional 40 percent increase to the long-term contract iron ore prices. The miner said it could compensate mills for any differences of price in relation to the final prices set in the annual price negotiations.
BHP Billiton is also reported to have threatened not to implement previous agreements if the mills refuse to accept the provisional increase. The miner's aggressive stance could be seen as an attempt to influence the Chinese producers' expectations in the ongoing annual price talks.