CISA: iron ore import price should return to the level of 2007
MetalBiz—Luo Bingsheng, Administrative Vice-chairman of China Iron & Steel Association (CISA) said on June 2 that significant drops of imported iron ore price is a growing tendency. Chinese steel mills are negotiating with the iron ore suppliers, aimed to make the price return to the level of 2007.
Analysts believe that the goal is in accordance with the steel manufacturer’s requirement that the benchmark price of 2009-2010 should reduce more than 40%.
Because enterprises in other countries of Asia have reached iron ore initial price with Australian mines, analysts think that China side face greater pressure on the condition of deadlock. In view of this, Luo Bingsheng disclosed that the rough situation can not solve any problem and it is very unfavorable for the opposite side to export iron ore to China.
Luo estimates that this year iron ore market will present serious oversupplying situation. Japan and S.Korea and etc. imports sharply decline and Japan reduction may reach 30%, but China still largely imports.
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