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China Steel Association said that the difficult negotiations on iron ore
"2010 iron ore price negotiations very difficult, because the two sides hold different views on the price increases in the short term is difficult to have results." 7, the China Steel Association, long, Wuhan Iron and Steel Group Chairman Deng Qilin in an interview when is very much concerned about the progress of the negotiations of iron ore to make a response.
In fact, this year's negotiations started, the three mining companies on the requirements of price increases has been increasing. 10%, 20% ... ... A few days ago, but came three iron ore mining demands this year up 50% of the price of a long association news, making this in a low-profit status of the situation of the domestic steel industry, more and more worrisome. It is reported that domestic large-scale steel mills, iron head revealed that Rio Tinto iron ore chief co-presented this year's bid was 50 percent higher than last year's request, and BHP Billiton hopes for some steel mills to implement the spot index price, while CVRD required this year to last year, the spot price and the price of a long association on the basis of a further price increases the difference by 50%.
Deng Qilin have said that if the iron ore rose more than 50%, will exceed the cost of China's steel industry, "can not afford and can not accept." Deng Qilin accused of mine has obtained profits, "You earn three times as much five times, how do we not even a saliva do not drink it? 1:00 meager profits are not, it is unfair and immoral. "
In addition, the high iron ore spot prices of iron ore negotiations also made the situation even more detrimental to China's steel enterprises. Last week, 63.5% grade ore to the coast of India quotes powder up to 140-142 U.S. dollars / ton, the highest in nearly 18 months since a new high.
Qi Tang Lin stressed that if a substantial price increase of foreign mining companies, then China's steel prices are only two possible, the first loss of steel prices collapse, the other is Daobi prices of downstream products.
However, "I have steel," Xu Xiangchun, director of network information, said China's steel prices if the prices came to the downstream by up-regulating the transfer of costs, market demand can be smoothly digested forecasts are not good.
Participate in the National "two sessions" Zhang Xiaogang, general manager of Anshan Iron and Steel Group, recently revealed to the media, the prospects for this year's iron ore price negotiations are not optimistic.
As China's steel industry concentration is low, iron ore demand is strong, over the years of iron ore negotiations are still in a passive position. Last year, the decline in global demand due to financial crisis, has a long association prices have reduced by 33%, but because of China Steel Association adhere to a higher discount, no agreement between the price, thus turned to the spot market, China's steel prices, or privately with the three Large mines signed the so-called 33% discount price of the interim agreement.
For the passive situation of the negotiations, Deng Qi-lin that the Chinese government should be initiatives to deal with foreign mining companies the expense of the law of value and principle for the behavior of iron ore to price spikes, as well as disorderly China's iron ore imports. His proposal is to accelerate China's steel industry, iron ore import licensing system and the agent system.
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