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(From Lloyds List)
Long term agreements part of a growing trend that is predicted to help producers and suppliers, writes Namrata Nadkarni
BHP Billiton has signed a contract worth $9bn to provide China with 12m tonnes of iron ore per year for the next 25 years.
In the speedily inflating steel industry, the only sure way for producers to guarantee supplies at economic rates is for them to sign long term agreements with suppliers. What began as a 10-year agreement between Corus steel and CVRD has now become a market trend, one that benefits the supplier as well; guaranteeing them a well paying market for their products for the long run.