BHP secures 19% over iron ore Rebecca Keenan 27may06
BHP Billiton has won the same price increase for its iron ore as major rivals but the world's largest miner is still continuing to negotiate prices with the Chinese steel mills.
BHP Billiton has settled its benchmark contract prices with a number of Japanese, Korean and European steel customers, securing a 19 per cent price increase on last year's contracts. These customers are understood to represent most of BHP Billiton's sales base but do not include the Chinese mills.
BHP Billiton said the 19 per cent price increase was across the range of lump and fines iron ore products supplied by the company.
A BHP Billiton spokesman confirmed the miner was still in discussions with the Chinese mills but could not outline when those talks would end.
Chinese steel mills have been protesting higher prices since the annual negotiations began, saying they would not accept another price increase over last year's unprecedented 71.5 per cent price hike.
BHP Billiton's pricing announcement was expected following similar announcements from rivals Rio Tinto and Brazil's Campanhia Vale do Rio Doce earlier this month.
Rio Tinto has settled its contracts with Japanese and South Korean steel mills at a 19 per cent premium while CVRD has bedded down similar deals with mills in Germany, India, Japan, Italy and South Korea.
BHP Billiton's announcement came after the market closed, with its shares finishing $1.10 higher at $28.55. AAP
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