Tuesday, 30 Aug 2011
According to the The Australian Financial Review, BHP Billiton Ltd has moved half its coking coal customers from quarterly to monthly contracts in the space of six months as its looks to reduce pricing terms, as it has done in the iron ore market.
The news gives more evidence that BHP chief executive officer Marius Kloppers is determined to move to increasingly shorter contracts.
Mr Kloppers is pushing harder in this direction than rival giants Anglo American and Rio Tinto, which use quarterly contracts.
As the world's largest coking coal exporter, BHP has more leverage on contracts. Contracts are based on an index price which means less difficult negotiations with customers.
(sourced Businessspectator)
According to the The Australian Financial Review, BHP Billiton Ltd has moved half its coking coal customers from quarterly to monthly contracts in the space of six months as its looks to reduce pricing terms, as it has done in the iron ore market.
The news gives more evidence that BHP chief executive officer Marius Kloppers is determined to move to increasingly shorter contracts.
Mr Kloppers is pushing harder in this direction than rival giants Anglo American and Rio Tinto, which use quarterly contracts.
As the world's largest coking coal exporter, BHP has more leverage on contracts. Contracts are based on an index price which means less difficult negotiations with customers.
(sourced Businessspectator)
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