BHP Billiton and Rio Tinto have reached agreement with major Japanese steelmakers for iron ore at 36¢ per dry long ton unit in the 2002 fiscal year that began back in April. This price, which is 5% lower than the year-ago contract price, will be used by iron mines worldwide to set prices through next spring. Bob Kirkby, president of BHP Billiton's carbon steel materials unit, says the price "fairly represents the current state of the global iron ore and steel industries." While the annual round of talks had dragged on beyond the usual late-winter deadline, the price cuts secured by the embattled Japanese steel industry aren't as deep as most analysts were anticipating. "It was a pretty good outcome as far as the iron miners are concerned," says analyst Mark Pervan at Daiwa Securities in Sydney.