Stock market analysts Goldman Sachs JBWere say that BHP Billiton will be looking for a much larger increase in the iron ore benchmark price than is currently being suggested. Estimates for the annual benchmark contract price range from between 30 per cent and 50 per cent with Japanese and Korean steel makers being asked to pay around 40 per cent more, but BHP Billiton's comments that the spot iron ore price is90 percent higher than the 12 month contract price suggest it is seeking a much larger increase in benchmark prices this year.
"We were left in no doubt that BHP would be looking for a 90 per cent iron ore price rise for a 12 month contract," the bank said.
BHP's first half result were slightly ahead of its forecast but divisional results fluctuated with petroleum weaker than expected due to high depreciation and amortisation on new projects, iron ore and base metals were in line with expectations while coking coal and other smaller divisions outperformed.
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