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Wednesday, June 10, 2009

Iron ore price negotiations - Wuhan supports CISA stance

Wednesday, 10 June 2009

It is reported that Wuhan Iron & Steel Group Corp, China's third largest steelmaker has stopped importing iron ore under contract prices and turned to spot market since last year end and is not worried about the imports of raw materials. The state run steel mill also strongly supported China Iron & Steel Association firm stance in rejecting the 33% to 44% Rio-Nippon iron ore price cut deal settled on May 26th after its GM Mr Deng Qilin took up his new chairman post in CISA 3-month earlier.
Mr Deng said costs for overseas iron ore production is less than USD 20 per tonne but they were sold at an averaged USD 80 per tonne for Chinese customers even amid the financial crisis.
Nearly 70% of Chinese steel mills have incurred losses last year on surging iron ore benchmark prices when China taken in almost half of the global total ore usage.
Source: MySteel