On Wednesday, April 22, Australian mining company BHP Billiton Ltd said that the company sold 28 percent of its iron ore output at cheaper spot prices as steel mills deferred long-term contracts and cut output by up to half due to weaker demand.
Melbourne-based BHP Billiton said in a statement that all the deferred iron ore was sold on the spot market, reducing the share of contract sales to 72 percent in the nine months ended March 31. The spot market for the steelmaking material is trading at about 35 percent less than annual contract prices set last year.
Joining Brazilian Vale in discounting as Chinese steelmakers push for the first contract price cut in seven years and delay purchases, BHP Billiton stated, "The global recession has curbed demand for steel and market conditions will remain uncertain."