CISA continues iron ore negotiation, not anxious for the result at the end of June
MetalBiz—With Japan and S.Korea enterprises reach 2009 iron ore long-term contract price with Australian and Brazilian mining enterprises, it is more likely to break the negotiation between mining enterprises and China. However, the world largest mining enterprise Vale broke out this scandal and firstly issued a formal statement that it greatly expects to reach 2009 iron ore contract price with China steel enterprises. Shan Shanghua, secretary-general of China Iron & Steel Association (CISA) revealed that China side is negotiating with the three mines
According to the Q1 report of Vale, China market has been the uppermost profit support. Q1 Vale total revenue from China was U.S.$2.423bln, accounted for 44.70% of accumulative revenues.
The data show that China imported iron ore totaled 444mln tons in 2008, accounted for 52% of global iron ore shipments, thereinto, the import from Brazil, Australia and India was about 100mln, 180mln and 90mln tons, occupied 22.5%, 40.5% and 20.3% of total import respectively. If China only reaches annual agreement with Vale, it must hit BHP-Rio under the condition of iron ore demand setback, in a certain degree, it will collapse the strategic relationships of the three iron ore giants.
Hope the result at the end of June will be a satisfying answer.
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