BHP, Rio Tinto Seek Monthly Contracts With Chinese Steelmakers-Report

9th Jun 2010 03:14

SYDNEY (Dow Jones)--BHP Billiton Ltd. (BHP) and Rio Tinto Plc (RTP) are offering monthly iron ore prices to Chinese steelmakers, just months after moving from an annual to a quarterly pricing regime, Metal Bulletin reported. The report Tuesday quoted sources at Wuhan Steel and Shagang Group, China's fourth- and fifth-largest steelmakers, saying that monthly prices would be offered on top of quarterly prices. "We will probably get a small proportion of contracted iron ore under the monthly pricing scheme, while the majority remains under the quarterly pricing scheme from Australian suppliers," the report quoted a senior official at Shagang as saying. Macquarie sees Chinese domestic steel demand rising by 15.3% this year but slowing to an 8% increase next year and 7.5% in 2012, with demand led by the property, commercial real estate and infrastructure sectors. Newspaper website: http://www.metalbulletin.com -By David Fickling, Dow Jones Newswires; +61 2 8272 4689; [email protected] (END) Dow Jones Newswires June 08, 2010 22:14 ET (02:14 GMT)