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Why would steel manufacturers and iron ore suppliers agree to minimum purchases/sales in long-term contracts? What advantage(s) would BHP Billiton gain by pricing to

Why would steel manufacturers and iron ore suppliers agree to minimum purchases/sales in long-term contracts? What advantage(s) would BHP Billiton gain by pricing to steel manufacturers on a CIF (cost insurance and freight) rather than FOB basis? What advantage(s) do Chinese steel manufacturers gain by negotiating jointly with iron ore suppliers? How can Chinese steel manufacturers improve their bargaining position relative to BHP Billiton? Should BHP seek the surcharge in the 2006-07 price negotiations?

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