Australian iron ore miners ask Asian steel mills for a 40% high

Chinese newspaper “21st Century Business Herald” said on Wednesday that British-Australian iron ore miners Rio Tinto and BHP Billiton are asking steel mills in Japan and South Korea to accept a 40% high in the contract prices of iron ore for 2010 while discussing with Chinese customers. A first round of talks with Japanese and Korean buyers have reportedly been completed and that they accepted that prices must rise this year, but no agreements have been signed.

The newspaper also said Chinese mills are unwilling to accept an increase of more than 30% and look for a rise between 20% and 30%.