First Financial Daily, August 5 under the iron ore negotiations have been at an impasse, a number of small and medium-sized international iron ore producers got yourself to find a way out, after all, they can not be shoulder to shoulder with the three major mining companies.
Foreign disclosure yesterday, a medium-sized Australian iron ore producer Atlas Mining CEO David Flanagan, in the gap present at the meeting, for of uncertainty consideration of future iron ore prices, the company has with the Chinese steel industry customer price "fair" agreement signed.
David Flanagan, said the so-called "fair" agreement, the two sides negotiated the price is based on an indicator, if the changes in the spot price exceeds the target price of upper and lower limits, Atlas will receive half of the increase will bear half of the decline.
But David Flanagan did not say whether the company had reached an agreement on price with Chinese customers. Representation point of view from David Flanagan, Atlas just with the Chinese iron and steel enterprises in the pricing reached a new agreement.
This agreement rainy day, solve could happen again like last year's financial crisis has led to the volatility of the spot price, making no implementation of a long association. At the same time, this pricing is also in line with the negotiations on behalf of the Chinese iron and steel enterprises in China Iron and Steel Association ("CISA") requirements.
CISA vice chairman Luo had told CBN reporter, the long association benchmark pricing mechanism should not change, but should be considered the year may occur can not be predicted long association should have the space to make modest adjustments according to the actual situation.
However, the "fair" agreement with iron ore giant Rio Tinto different starting price agreement previously reached with Nippon Steel Corporation. Agreement, the starting price is still the annual pricing, and did not allow the year may be adjusted.