Reuters reported that world no 2 iron ore miner Rio Tinto has agreed to adopt monthly iron ore pricing contracts, switching from quarterly pricing as long term supply deals expire.

The Australian Financial Review said in a report which cited analysts and Rio Tinto executives that the miner would move to shorter term pricing with monthly contracts but was not interested in playing the swaps market.

The newspaper quoted Rio marketing chief Mr Warwick Smith as saying that BHP Billiton is already selling some iron ore on a short term monthly basis and would like its contract prices to move even closer to the daily market price that Rio Tinto would not impose new terms on customers with the switch but would make them available if that is what they wanted.

Rio Tinto said last week it would offer a portfolio of iron ore pricing which would include a mix of long term and short term contracts and spot sales.

(Sourced from Reuters)