Growth in iron ore demand, industrial production and steel production are iron ore pricing negotiations affect iron ore contract year. Iron ore producers and steel mills company to negotiate and determine the price of iron ore contract unilaterally, without any conditions set in the contract price of iron ore annually. This situation resulted in many companies producing iron ore and steel company factory injured.

Case officer arrest biggest iron ore producer Rio Tinto is due to the absence of a system that regulates the price of iron ore that transpran.

BHP Billiton, the largest iron ore producer, the existence of a system that can manage the system the price of iron ore that transpran, so that the mechanism is not iron ore sales set by the results of negotiations, but there are market mechanisms that set the transpran.

BHP Billiton’s chief financial officer Alex Vanselow kepada Australian Broadcasting Corporation mekanisme pasar akan menguntungkan semua orang.

“Tidak ada yang bertanya bagaimana kita negosiasi harga tembaga yang menjadi Cina karena ada mekanisme harga,” katanya. “That’s it’s global dan diterima di seluruh dunia yang menjual pada harga, dan hal yang sama harus terjadi dengan bijih besi.”

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