It is reported that in iron ore price talks Japanese steel producers and the global mining giants have reached preliminary agreement on a new contract system, with short-term contracts correlated with the stock markets to replace the previous pricing system based on annual iron ore price negotiations.
Before a final agreement is reached, the Japanese steelmakers and the major miners, i.e., Vale, BHP Billiton and Rio Tinto, are said to still have some issues to tackle, though the issues in question have not been specified. Meanwhile, the mining giants have not yet come to any agreement with the Chinese and European steel producers in the price negotiations.
Meanwhile, the China Iron and Steel Association has said that it has no information that Japanese steel mills plan to switch to a new iron ore pricing system in place of the annual benchmark system, international press sources have reported.