The long-term supply agreement price is usually set by the supplier and the buyer through mutual discussion. It is usually set at a 30% discount from the spot price. That is to say, in order to protect the common interests of buyers and sellers, the long-term buying and selling price signed ensures that the price will not fluctuate violently over a long period of time. The meaning of the long-term agreement pricing mechanism and the analysis of the long-term agreement pricing mechanism. The annual pricing long-term agreement mechanism means that starting in the fourth quarter of each year, the major international iron ore suppliers and demanders determine the iron ore price for the next fiscal year through negotiation.

Once the long-term agreement price mechanism is determined, both parties to the long-term agreement price mechanism will implement the negotiated price within the next year, and other iron ore suppliers and demanders of the long-term agreement price mechanism will adjust the price. Confirm and follow.