Iron pricing overhaul expected to bolster swaps

A radical overhaul of global iron ore pricing is expected to dramatically push up swap volumes, particularly in Asia where most of the buyers – steel mills – are based. During the past few weeks, agreements between Brazilian mining company Vale and Anglo-Australian miner BHP Billiton and Japanese and Chinese steel mills is being touted as signalling the end of the long-standing benchmark system of annual contracts and lengthy price negotiations.

The new pricing comes in response to a standoff l