Dow Jones reported that BHP Billiton is continuing its push to move away from the annual benchmark iron ore price and hopes that all its customers will eventually move to indexed pricing.

Mr Tom Schutte president marketing of BHP Billiton in a briefing said that as markets develop and evolve, more players enter the sector, and both producers and customers were starting to see the benefits of short term pricing.

Mr Schutte said that Chinese customers were becoming more aware of the major's move away from the benchmark and the miner was witnessing a gradual move in a direction away from the annually set prices. He added that “There is a growing understanding of a shorter term type pricing mechanism.”

Mr Schutte added that BHP would love it if all its customers moved away from the benchmark eventually. Mr Schutte said that “It would make it smoother and less acrimonious than the current benchmark protracted negotiations. I expect there to be a transition period. Markets don't change in one year.”

Annual iron ore price talks with China have been hit by drama this year, following the detention of Rio Tinto's iron ore boss in China, Stern Hu and three of his colleagues, effectively ending constructive talks between the majors and the economic powerhouse.

(Sourced from Dow Jones)