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What are the principles of the traditional negotiation mechanism in the iron ore
The traditional international iron ore price negotiation mechanism began in 1981, in practice formed a set of strict rules. First, the "three to three" pattern: Brazilian Vale and Australia's BHP Billiton, Rio Tinto (two tops) on behalf of the supply side, China's Baosteel Group, Japan's Nippon Steel, the European Union on behalf of steel mills around the demand side, the three major supply side and the three major demand side in the form of "cross-catch" to start negotiations; Second, the "first - the first - the first iron ore price negotiation mechanism began in 1981, in practice, a set of more strict rules. Negotiations; second, "first - follow the wind" mode: supply and demand either one to take the lead in reaching an agreement on the price of minerals, the other parties are unconditionally follow the wind to accept the results; third, "long term agreement, f.o.b., the same rate of rise "Principle: the pricing object for the long-term agreement iron ore; pricing benchmark for the FOB price; pricing for the same rate of increase, that is, the same quality of iron ore around the same rate of increase, the same type of iron ore of the same quality rate of increase.
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