Rio Tinto said some customers asked for a benchmark iron ore settlement for this year below the current spot price, which the global miner sees as "unacceptable", a spokesman said on Friday.
"Some customers have suggested a benchmark price for this year below current spot levels which is not acceptable to us, particularly against an improving market outlook over the course of the year," a Rio Tinto spokesman told Reuters in an e-mailed reply to questions.
The miner believes the continued development of the spot market will be a Chinese market phenomenon. "It..will largely depend on whether the Chinese steel mills wish to adhere to long-term contracts with annual pricing or switch to a system of shorter-term purchases," it said.
"As a low-cost producer, we can live with either system, or a combination of both."
Source: Reuters
No comments:
Post a Comment