The implementation of monthly pricing mechanism by

2022-08-11
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Rio Tinto: the implementation of the monthly pricing mechanism will abolish the iron ore negotiation

Rio Tinto: the implementation of the monthly pricing mechanism will abolish the iron ore negotiation, which is especially suitable for first-class seats

China Construction machinery information

Guide: Rio Tinto Group, one of the world's three major iron ore suppliers, said that it will gradually implement a new mechanism to adjust the pricing of iron ore monthly according to market demand, The quarterly pricing adjustment mechanism implemented since April 2010 will be abolished. According to the report, Rio Tinto hopes that the price of iron ore can change at any time following the market demand

Rio Tinto Group, one of the world's three major iron ore suppliers, said that it would gradually implement a new mechanism of monthly pricing adjustment of iron ore according to market demand, and the quarterly pricing adjustment mechanism implemented since April 2010 would be abolished. According to the report, Rio Tinto hopes that the iron ore price can change at any time in line with the market demand. In the future, the company will sign as many short-term supply agreements as possible and compress long-term supply agreements

at present, China Iron and Steel Association and major iron and steel enterprises are negotiating with the three giants on the price of iron ore

in 2010, Japanese steel enterprises took the lead in accepting the quarterly iron ore price agreement, and the annual iron ore price negotiation mechanism, which has been implemented for more than 40 years, was abolished. Although China has not publicly and formally accepted this mechanism, in fact, China's major steel enterprises have signed short-term supply agreements with the three giants since the middle of last year

Reuters reported that BHP Billiton, the world's second largest iron ore supplier, is planning to implement a shorter term iron ore pricing mechanism, and the period of price adjustment may be shortened to two weeks or one week, in order to reflect the changes in market supply and demand as soon as possible

analysts said that if the Nuo plastic parts of Rio Tinto and BHP Billiton need to be annealed; If the goal is finally achieved, all global iron ore transactions will become spot transactions, and steel enterprises will have to endure the impact of frequent changes in iron ore prices

however, in the short term, this change seems to be beneficial to iron and steel enterprises. Affected by the earthquake in Japan, China's spot iron ore prices may not be able to achieve their wishes. Since the measurement results and production date of this batch of products reached a record high of $190/ton in mid February, they have fallen by 14%. This means that the price of iron ore may decline in the short term

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