Bloomberg reports that Vale and BHP Billiton ended a 40-year system of setting annual prices by signing short-term contracts with Asian mills, with the Brazilian company winning a 90% increase.

Sumitomo Metal Industries Co., Japan’s third largest steelmaker, agreed to pay Vale $100 to $110/t for the quarter starting April 1, spokesman Toshifumi Matsui said. BHP, the largest mining company, said it will sell the majority of its production to Asian steel mills on shorter-term contracts without giving pricing.

Nippon Steel Corp., Japan’s largest steelmaker, also reached a “tentative” price agreement for the April quarter, President Shoji Muneoka said in Tokyo without providing pricing details..

“This is not a traditional benchmark outcome,” Amanda Buckley, a spokeswoman for BHP, said. “Details of the agreements with our customers are subject to confidentiality agreements,” she said, declining to comment on the price agreed or name customers.

Vale wants a new pricing system to improve pricing flexibility, predictability and transparency, Pedro Gutemberg, director for marketing and research at Vale, said. He didn’t confirm the price agreement with Sumitomo Metal.