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Public letter to Ministry of iron ore negotiations are still seven cities in steel inventories increased in June
Browse4335   Published Date2009/8/22
Yesterday, the Ministry of Industry and Information Technology Chief Engineer, said the spokesman Zhu Hongren, iron ore talks still in progress, and we hope the two sides as soon as possible so that they can reach a normal level of profitability of the price agreement.

This will end the recent negotiations on the Chinese side, China has accepted the other requirements rumors price break in one fell swoop. It is understood that earlier in the Rio Tinto and Nippon Steel reached an iron ore this year's first long-HS Price 32.95% -44.47% price cut, the Chinese side has made clear: not to follow, to continue negotiations. However, recent negotiations on the three major iron ore mining enterprises, and Japan and South Korea and European steel mills have reached similar price agreement made considerable pressure from China.

Yesterday, Zhu Hong Ren said that in response to financial crisis, China and the world to maintain good trade relations, joined together to deal with financial crises. Hope that iron ore suppliers and producers through communication, coordination, negotiation as soon as possible to reach a more fair and reasonable to both sides to maintain a normal level of profitability of the price agreement.

It has been learned over the years, China's strong demand for fattened iron ore business, they have made huge profits. The Chinese side to develop iron ore price negotiations this year's bottom line: Price back in 2007 that about 40% -45% price reduction, it is expected the other party can maintain a reasonable level of profitability, the Chinese side will survive this in mind. Yesterday, the joint metal mesh analyst Hu Yan Ping, China's steel industry will be the first half of the overall losses.
The reasons for the current deadlock in the negotiations and abroad is one of China's steel market has improved recently, the price rebounded slightly. However, Zhu Hong Ren said yesterday that although the steel industry prices and production there have been some recovery, but a high degree of attention to other aspects of the market signal. In June, like Beijing, Tianjin, Shanghai, Guangzhou, Shijiazhuang, Shenyang, Harbin, iron and steel in the inventory of these large cities are on the increase, so that in fact also illustrates the changes in the relationship between supply and demand in the event of some new changes.
Industry said that once again, blindly yield, production far exceeds demand, the domestic steel market prices are likely to once again caught are generally limited production cut situation.
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