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CHINA> National
Iron ore price talks still underway: CISA
(Xinhua)
Updated: 2009-07-31 14:02

BEIJING: China is still in talks with the world's major iron ore firms for the annual supply deal, Friday's Shanghai Securities News reported, citing Shan Shanghua, secretary-general of the China Iron & Steel Association (CISA).

CISA demands all steelmakers around the country accept one unified iron ore import price once the price for 2009 is determined, said Shan during an expanded conference of the CISA standing council.

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The measure aims at regulating excess iron ore import of small steelmakers and intermediary traders, which had hampered the negotiation by creating unnecessary demand, said Shan.

In the first half of this year, iron ore import soared by 29.29 percent year on year to 297 million tonnes, while intermediaries imported 131 million tonnes, up 90.43 percent from last year.

However, Shan did not reveal when the negotiation would reach an agreement.

China has been working to seek a cut of more than 40 percent in iron ore price from the world's three biggest mining companies -- Vale of Brazil, Rio Tinto and BHP Billiton, said the CISA earlier.

The association said in a statement in late May that China's steel companies would refuse to accept the 33-percent price cut reached between Rio Tinto and Japan's Nippon Steel Corp.

Such price cuts would lead to overall losses for Chinese steel companies, said CISA.

If the CISA failed to reach a supply agreement with any of the three biggest mining companies -- Vale of Brazil, Rio Tinto and BHP Billiton -- Chinese steel makers would have to turn to the spot market for supplies.

According to the statistics released by the CISA Thursday, 71 large and medium steel manufacturers gained 1.73 billion yuan (US$253.29 million) in the first two quarters.

 

 

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