This year iron ore long-term contract price should substantially dropped
On April 13, the Ministry of Commerce deputy director of foreign trade Liang Shuhe said in the international market seminar that the domestic steel price had fallen the level of 1994, so the material price especially iron ore long-term contract price must be reduced substantially.
Liang pointed that domestic import iron ore spot price significantly slumped while the imports inclined, and it is possible that the phenomenon would be continuous. The global steel production dropped 23% in Jan. to March this year and the price would keep the continuous downward trend. While, China the first two months production growth did not play a role in the needs-to end and the inventory in March climbed to 10mln tons, which did not made the iron ore price keep stable. He suggested that China Iron and Steel Association (CISA) and China Minmetals Chamber of Commerce should focus on the agent system of iron ore imports and standardize the trade order.
China Minmetals Chamber of Commerce president Xuxu said it is the fact that this year steel production declined, so is iron ore market demand. At present, crude steel reduction in European Union, North America and Asia reached 45%, 50% and 20% respectively.
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