BHP Billiton Ltd. (BHP.AU) won’t follow the iron ore prices reached between Chinese steel mills and Australian miner Fortescue Metals Group Ltd. (FMG.AU), the China Securities Journal reported Monday, citing senior officials with BHP Billiton China.

Chinese steel mills and Fortescue Metals Monday said they have reached
an agreement on iron ore prices that represents a 35% discount from
last year’s term prices.

The iron ore prices agreed with Fortescue should be acknowledged and
Chinese steel industry will insist upon its stance of a unified price
of imported iron ore, the report said, citing a senior official from
the China Iron and Steel Association.

It needs further negotiations with the other three global miners to see
whether they’ll accept the 35% price cut for 2009-10 term ore prices,
the report cited the CISA official as saying.  The CISA official didn’t
comment on whether there would be any penalties imposed on the three
global miners if they failed to seal a deal with the Chinese mills, the
report said.

Source: MarketWatch

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