Reuters Vale (NYSE:V) does not intend to switch to monthly iron ore contract pricing and will stick to quarterly pricing.
The market news is quoted as saying:
When the annual benchmark system collapsed in 2010, the top three iron ore miners, Vale, Rio Tinto and BHP Billiton, started to use various pricing mechanisms, based on quarterly indexed-prices. Top global miner BHP Billiton (BLT.L) (BHP.AX) is already selling some iron ore on monthly basis and would like its contract prices to move even closer to the daily market price. To price its contracted iron ore, Brazil’s Vale uses a quarterly system in which prices are decided by a three-month average of the Platts North China 62 percent FE CFR index IODBZ00-PLT beginning four months before the relevant quarter.