BHP Billiton, the mining company, is on Thursday expected to agree a record increase in the price of iron ore supplies to its largest Chinese customers, in line with a settlement negotiated last week by rival Rio Tinto.

Traders and analysts had first bet, encouraged by comments from senior BHP executives, that the miner would push for a larger price increase than Rio’s 79-96 per cent. Some traders suggested a 100 per cent price increase was on the cards for the ore, a key raw material of steel.