Pilbara iron ore exporter Atlas Iron will switch to monthly pricing when several of its long-term supply contracts reach completion in the next nine months.

Iron ore contracts have been moving towards spot market prices since BHP Billiton shifted from yearly to quarterly pricing early last year. BHP confirmed last week that all its iron ore contracts had now switched from quarterly to monthly pricing, and

Atlas revealed at the weekend that it planned to make a similar shift this financial year.

It said “As new contracts are entered or renewed, Atlas will be generally looking to shorten the pricing reference period from quarterly to monthly to ensure that a price more reflective of current conditions is received.”

Atlas will have great scope to implement the changes in the next nine months, as several three year contracts struck in late 2008 and early 2009 are due to expire.

(Sourced from smh.com.au)