Australian iron ore giant Rio Tinto has announced that it is currently negotiating contracts with its customers to supply iron ore priced on a quarterly basis.
Sam Walsh, Rio Tinto's chief executive for iron ore and Australia, said, "Rio Tinto's position reflects the recent structural shift in the iron ore market away from benchmark pricing. It is in line with our recent comments that benchmark pricing only works if it reflects market fundamentals, otherwise the system would need to change."
As discussions are still underway, no further guidance is possible at this stage, the company statement said.