June 24 MetalBiz—Benxi, Liao Ning province found a large ore reserve, over 3bln tons. According to experts, the type of this deposite is a mixture of magnetite and hematite and iron ore quality is between 25% and 62%. The current 3bln tons is just an estimated number, while its real reserve is likely to be doubled.
Insiders of the industry believe that this iron ore find, plus CISA regulating imported iron ore speculation strongly, which is likely to exert an important role in iron ore negotiation and impose pressure on the three mining enterprises.
Analysts pointed out that no worry to buy ore is a view repeatedly emphasized by CISA in this year’s iron ore negotiation, because iron ore supply is expected to present oversupply of 200mln-300mln tons, plus this new ore reserve, there is no doubt that the favorable supplying position of the three mining enterprises will sharpen. In turn, China side has more confidence in negotiation and adheres to its requirement of 40% reduction.
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