Does it have anything to do with Vale and price fixing?? this was on CNN
Vale CEO Roger Agnelli said his company isn't "fixing prices: who is fixing the prices is the market." He added that the supply-demand fundamentals of the metal influence the price movements. Steelmakers and Chinese officials allege that the global iron ore market is largely concentrated among the three major producers -- Vale, Rio Tinto(RTP), and BHP Billiton(BHP) -- and due to the nature of the iron ore industry a high threat of cartel formation is prevalent. Chinese steelmakers were forced to adopt a volatile new index-based quarterly pricing system, which was developed after the earlier 40-year-old traditional benchmark system was undermined due to a dynamic market. However, Vale is concerned that if China defaults on its quarterly contracts, spot prices would fall below the agreed price.
BHP Price at posting:
$38.74 Sentiment: None Disclosure: Held
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(20min delay)