On February 2, an unnamed Australian miner, described as having a close relationship with fellow Australian miners Rio Tinto and BHP Billiton, stated that Rio Tinto has completed the first round of negotiations with Japanese and South Korean steelmakers in the long-term iron ore contract talks for 2010, and has requested a rise of about 40 percent compared to the 2009 price.
From the start of the negotiations, both the Japanese and South Korean steelmakers established that the 2010 iron ore price would increase compared to last year's price. Thus, the Australian miner in question stated, both sides are now focusing on the extent of the markup.
According to an insider on the Chinese side close to the negotiations, China is aiming to keep the increase margin to within 30 percent, i.e., between 20 percent to 30 percent.