In response to protests by Chinese steelmakers against its proposed 100% increase in iron-ore prices, Australian-based BHP Billiton has accepted a 71.5% price hike, the same increase won seven weeks ago by its rivals. BHP is still seeking concessions in freight charges, arguing that Asian steelmakers have a freight cost advantage amounting to a US$20 differential in the landed cost of Australian iron ore and the South American ore. BHP's compromise was partly seen as a move to head off potential trade disputes ahead of a China visit by Australian prime minister John Howard next week.
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