Deadline missed for Australian iron ore

Memphis News.Net
Saturday 4th July, 2009

Australian and Chinese mining officials have missed an annual deadline to set benchmark iron ore prices.

The lack of coordination between the Australian sellers and the Chinese buyers has signalled the end of a 42-year-old trading system.

According to Australian mining companies the Chinese demanded cuts in iron ore prices of up to 45 percent, causing the system to fail as the mining groups refused to accept the Chinese demands.

Australia has already agreed to cut prices by about a third for Japan and South Korea for the next year.

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