Australian miner BHP Billiton said it wanted more than the 96.5% price increase for iron ore agreed to by its competitor Rio Tinto and Chinese steelmakers, the South China Morning Post reported. BHP said the price negotiated by Baosteel Group, China’s largest steelmaker, with Rio Tinto did not provide an adequate freight premium. "We’re delighted to see the progress," said Marcus Randolph, chief executive for ferrous and coal at BHP. "But it doesn’t actually cover the full difference." BHP’s argument for freight premiums is based on spot freight rates, but an analyst noted that most steelmakers have long-term contracts with ore suppliers at lower freight rates. Chinese officials are reportedly mulling a boycott of BHP iron ore imports to discourage the miner from raising prices.
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