Rio Tinto suspends price negotiations with Beijing

NO IRONING OUT:: The company has warned that the current system, in which the first price agreed to becomes the benchmark for 12 months, has to evolve AFP, SYDNEY Saturday, Sep 05, 2009, Page 11 Anglo-Australian mining giant Rio Tinto said yesterday that it had suspended iron ore price negotiations with China following the arrest of executive Stern ...

[Mr Fix it]

The 12 month benchmark price is not working. If the necessary date for negotiations cannot be accessed by the seller, how are they able to negotiate.
Japanese contract prices should should set the benchmarks. They have the experience and integrity for mature trade.

[Mr Fix it]

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[Palawa]

Don't sell them a damn thing unless it has been value added to the max. When you only supply the raw material, you end up as the poor cousin as we have seen through out many countries.

Australia made it's mark in the world by selling good manufactured products, now we only sell the raw materials and are beginning to see the result where the buyers can hold us to ransom rather than rely on us supplying their necessary goods.

With raw materials, your economy only gains once, when you value add, it gains every time a value is added to the product. Pure logic and common sense, something economists, government and big business don't seem to understand. Could be being ideologists, they see nothing but their delusions. Hence the massive growing foreign debt and collapsing Australian industry.

[smallville]

The Iron ore reserve in the world is estimated to sustain more than 500 years and it can be recycled. This is not like oil. Do not expect price skyrocket in the next few years. Maybe the price of natural gas was underestimated but not iron ore. I am an invester and I always think the price of iron ore ridiculous.

China do not lack of Iron ore at all. The reason why China import iron ore from Australia and Brazil is because Australia and Brazil's Iron ore contains more iron compare to China's iron ore. It is only a matter of cost.

China imported 0.4 billion tons of Iron ore in 2008 but China's own reserve is more than 70 billion tons. Even the China's iron ore contain less iron ore than Australia and Brazil's, I can clearly tell you China do not lack of Iron.

You can find China have no problem at all about the skyrocked Copper price.