1. The long-term price negotiation mechanism determines that the annual iron ore price negotiation starts from 198 1, and the iron ore price in a fiscal year is determined through negotiation between iron ore suppliers and consumers. Once the price is determined, both parties will implement it according to the agreed price within one year. According to traditional negotiation habits, the international iron ore market is divided into Japanese market (Asian market) and European market. Every fiscal year, represented by Japanese iron ore users in the East and German users in Europe, iron ore products prices in Asian and European markets are determined with BHP Billiton Group of Australia, Hammersley Company under Rio Tinto Group and Vale of Brazil (CVRD Company was renamed Vale in 2007) respectively.

The negotiation convention is that when the price of any consumer and any supplier reaches an agreement, the negotiation is over, and the international iron ore supply and demand sides accept this price as the new annual price, that is, the initial price. Moreover, ore suppliers will promise not to lower the price when reaching a price agreement with the largest customer, and steel mills will also promise not to accept higher price increases from other mines.

So whoever wins the starting price has a great influence on the supply of iron ore for a whole year! !

Second: index pricing,

20 10 is the turning point of iron ore pricing system. The annual long-term cooperative price, which has been used for 40 years, has been subverted and replaced by a quarterly pricing mechanism based on the spot market. According to the pricing formulas of the three major mines, the iron ore price in each quarter will be determined according to the average price of the spot index in China market in the previous quarter.

At present, there are three influential iron ore spot indexes in the international market: TSI index of Global Steel News (SBB), MBIO index of Metal Herald (MB) and Platts' Platts index. The quotations vary.

Driven by the mine intentionally or unintentionally, many steel enterprises choose or are "selected" Platts. Since then, the fluctuation of Platts index has largely replaced the fixed annual benchmark price, reflecting the price trend of iron ore.

Third, monthly or quarterly pricing is negotiated between traders or steel enterprises and mines.