MARKET TALK: Most Asian Iron Ore Buyers On Quarterly Prices -Rio

14th Jul 2010 07:10

0610 GMT [Dow Jones] Agreements now signed with around 50% of Asian buyers for iron ore sales based on quarterly pricing, says Rio Tinto (RIO.AU) in quarterly production report; provisional pricing of sales to all other customers now on quarterly basis as move away from annual benchmarks continues. Move away from quarterly prices a plus for Rio and BHP Billiton (BHP.AU), iron ore prices more than doubled since BHP and Vale (VALE) moved Japanese steelmakers to quarterly pricing March 30, signalling end of annual system. Iron ore at US$116.89/ton today, according to Metal Bulletin iron ore index vs US$59.70 on March 27. 3Q prices will be based on March-May average index price, Rio says. Pilbara sales volumes of 56 million tons in 2Q, with shipment total of 220 million tons in 12 months to end June. RIO last up 0.8% at A$67.11. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 14, 2010 02:10 ET (06:10 GMT)