iron ore price? we sold underprice?

"The West Australian Midwest resources company Murchison Metals has been forced to sell its iron ore at heavily reduced rates after a number of Chinese ships arrived at Geraldton without letters of credit.

Although the ore was not handed over, the company was then forced to sell it to a third party at a discounted rate.

Other iron ore miners in the Pilbara have been in similar situations.

One company Mount Gibson was forced to accept $40 a tonne for its ore, compared to the benchmark price of $120 US a tonne.

Murchison's CEO Paul Kopejtka says the company has not sold ore at that price, but it is selling cheaper than contract rates.

"The volumes have been maintained there has been a regnotiation on a ship by ship basis on pricing," he said.

"The main point to make is the volumes have been maintained unlike others where there have actually been cancellations on shipments.

"When a steel mill has wanted to renegotiate a price if we can't come to an agreement on that price we'll go and approach another and if the price is right we'll then ship to that client.""