BHP, Rio likely to trim 2009 iron ore price down by 15%

BHP, Rio likely to trim 2009 iron ore price down by 15%


BHP Billiton Ltd. (BHP) and Rio Tinto, the world No.2 and No.3 largest iron ore producer are facing the pressure to cut their 2009 iron ore prices by 15 percent after 6 consecutive years’ growth in price due to the weak demand from Asian market.

Analysts of BBY Ltd. estimate that the 2009 contract price index of Australian iron ore started from April1 will fall to US$78/ton, nearly cut in half from its previous peak of US$144.66/ton.



The most serious global financial crisis after the Great Depression has slapped down construction and automobile demand significantly, which forces steel mills throughout Europe, America and Asia to cut production.