Annual iron ore negotiation is still in deadlock and failure to get to agreement after experiencing several rounds of negotiations. Although Australian mining companies repeatedly objects the requirement of 40pc price reduction proposed by China side, Australia’s domestic Medias and analysis institutions all think Chinese enterprises will gain the upper hand in the new round of iron ore negotiation.
According to Australia Media, China will be the country, which will stabilize the energy demand and master mineral products market in the year of 2009.
An official from Deacon expressed that China owns enormous funds and capacity, while other countries do not have the enviable status.
A person in charge of Australia Energy Industry Organization said that, as the only prospective buyer, China has enormous influences.
One Analyst from Goldman Sachs expressed that the metallic mineral products demand from the world will shrink, and quantity of products’ prices decline is unavoidable, therefore, Australia’s resources industries will face tighter situation.
Hereby, many insiders from Australian mineral industries thought, China will twist the prices. Vaughan, the cooperation partner of BLAKEDAWSON expressed that at present, China is in a stronger bargaining position in international iron ore market versus the previous, and the current pattern changes due to the demand decline.
Some experts from industrial member predicted that, the contract would generally plunge around 30pc at the beginning of iron ore negotiation, and China side takes the control.
Excluding driving down iron ore price, Chinese enterprises also began to utilize fund superiority to acquire high-quality mineral assets. Since the end of last year, many Australian mineral companies have signed financing agreements with Chinese enterprises. For further info visit chinametalbiz.com
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