CISA: Australia long-term contract price should reduce 45% and Brazil should cut 40% price
May 21 MetalBiz—On account of the report that China Iron & Steel Association (CISA) has accepted iron ore long-term contract price to cut 30%-35%, CISA secretary-general Shan Shanghua denied this statement in an interview on May 20. He also expressed that China side insists on the price returning back to the level of 2007.
The executive of Vale said that the negotiation will be finished within weeks, while Shan said that the negotiation result can not predict. However, when referring to the progress of the negotiation, he said that China side will not have any contact with the three miners in the following 15 days. It was known that Vale had declared to give up the first negotiation right of 2009 long-term contract price, but recently it has stated the negotiation will complete within weeks. Shan does not understand this version.
Australian and Brazilian ore prices should fall down 45% and 40% respectively
Shan said that on May 21 CISA will issue a statement for some scandals. China side insists on Australian ore long-term contract price should reduce 45% and Brazil should cut 40% price. At present, the iron ore spot price in domestic market is nearly close to the level of 2007.
What do you think of the ore prices? How much it will fall down should be reasonable?
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