http://biz.yahoo.com/ap/080704/australia_bhp_billiton_baosteel.html
BHP, China's Baosteel agree iron ore price hike
Friday July 4, 11:40 am ET
BHP Billiton and China's Baosteel agree on iron ore price rise of up to 96.5 percent


SYDNEY, Australia (AP) -- BHP Billiton Ltd. said Friday that China's Baosteel, negotiating on behalf of the Chinese steel industry, agreed to price hikes of up to 96.5 percent for iron ore supplies this year following protracted negotiations.
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The increase is in line with an agreement Baosteel made last month with Rio Tinto, another major supplier, and comes as surging global demand for steel has squeezed iron ore supplies and sharply boosted prices.

Prices will rise 79.88 percent for iron ore fines and 96.5 percent for iron ore lump and are retroactive to April 1, BHP Billiton said.

"We are happy to have been able to settle the prices announced with one of our most important customers and we've been particularly pleased with the spirit in which both Baosteel and BHP Billiton undertook negotiations," said Marcus Randolph, BHP Billiton's chief executive for ferrous and coal, in the statement.

"At the end of what has been a long process, we believe our relationship with our customers remains as positive and strong as ever."

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