 April 14, 2005
In view of that Baosteel first reached iron ore price agreement with BHP-Billiton, Baosteel expresses its attitude to media through Baosteel spokesperson as following:
1.Through fully exchange and negotiation between the two parties, BHP-Billiton reached consensus with Baosteel that the iron ore FOB price increase by 71.5 for the year 2005. The two parties agree that world iron ore industry and steel industry are closely related; coordinative development and reciprocal support will bring long-term profit to both parties.
2.Both parties agree that it is an efficient way to determine the world iron ore reference price through fully exchange and negotiation. And the two parties also agree that the pricing mechanism of world iron ore need to be further adjusted and optimized along with the changes of world steel production and related conditions and environment in order to demonstrate fair trade policy.
3.Both parties agree that to maintain a healthy supply-demand relation is an important topic that two parties concern about along with the continuously growing demand for iron ore and the development of world economy and steel industry. Baosteel is one of the most important steel producers and BHP-Billiton is one of the major iron ore suppliers in the world. Both parties expressed that up stream and down steam should develop together and collaborate to maintain the long-term prosperity of the industrial chain.
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