a18c0902__Company_Announcement___FT_com__Factor
[Nature] Commodity prices and demand are volatile and strongly influenced by world economic conditions. The Group's normal policy is to sell its products at prices that reflect the value of our products in the market and not to enter into price hedging arrangements. Recent volatility in commodity prices and demand may continue, which could adversely affect the Group's earnings, cash flow and mineral reserves. The basis on which the Group prices iron ore in Asia is evolving and to the extent this results in prices or pricing mechanisms that are less favourable to the Group, its earnings and cash flow could be adversely affected. Furthermore, iron ore prices are typically determined on a landed in China basis, and increases in the freight market would adversely impact Group earnings. [Factor] 
Commodity prices and global demand for the Group's products are expected to remain uncertain
Annual Financial Report – Company Announcement - FT.com
Factor