June 23 ¡ªReport from foreign news agency that Rio Tinto and BHP Billiton asked Chinese steel enterprises to accept 95% iron ore price hike, or they will stop the supply from Australia.
Officials said the iron ore price hike of Rio Tinton and BHP Billiton was higher than the record-breaking 71.5% price hike in 2005. Rio Tinto and BHP Billiton warned Chinese customers that some yearly agreements will be in deadline till June 30, and then they will stop iron ore supply. They also said they would sell iron ore to a higher price spot market.
Analyst pointed out that most iron ore agreements of Rio Tinto will be in deadline till June 30, and agreement of BHP Billiton will be in deadline till September this year, therefore, there is much more time to negotiate with them. Macquarie Bank said iron ore price hike this time asked by Rio and BHP Billiton was higher than the expected 85%-95%. They should prepared for an unpleasant negotiation result in psychology.