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Home >> International Cooperation
The Chief Economist of Australia's BHP Billiton Visit
Date:2010-10-23       From:International Office, Research Department of Academy of Macroeconomic Research, NDRC

As for the raw materials pricing right issue, experts of Macroeconomics Research Department of Development and Reform Commission believed that BHP Billiton has abolished the current long-term agreement price, and switched to season- pricing mechanism , potentially increas the cost of Chinese enterprises. Australian guests explained that in the past five years, they had adopted long-term agreement price with Chinese trading partners, but the pricing system could not meet the current needs of the market. After BHP Billiton’s adoption of new pricing system, in 2009, some commodity prices were even lower than the previous long-term agreement price. In the long run it would be beneficial to both supply and demand sides. Australia would be willing to be open and honest, and adopt a transparent pricing system to provide the best quality products to Chinese partners.

 

The two sides also exchanged ideas on infrastructure investment, CPI trends and other issues.

 

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