CISA said iron ore negotiations within 10 days to finalize or receive a greater decline
Earlier, as the CISA agreed not to accept a 33% decline in iron ore prices, China became the only buyer to negotiate an agreement on global iron ore prices. Therefore, the industry has predicted that this year's negotiations may be fruitless. However, 23 news came, Chinese and foreign iron ore negotiations may soon be the result.
China Steel Association: within 10 days may reach an agreement
23, foreign media quoted Vice President of China Steel Association, the iron ore negotiations, the Chinese negotiating team member Li Xiaowei said, China's iron ore negotiations with the three mines may reach an agreement within 10 days. However, China will still not accept a 33% decline in the starting price.
Prior to this, the most widely circulated judgment was that the best result China could achieve was to accept a 33% decline, while requiring half a year to sign. But the news has brought new judgment space to everyone. Some analysts believe that Li Xiaowei's words are likely to mean that China has achieved a higher decline than 33%, but everything can only wait for the final results.
In 23, Li Xiaowei said that the iron ore supply and demand sides is closely related to the relationship, if one party is pursuing monopoly and profiteering, will eventually lose more. He said that China should seek to determine China's prices and China's mechanism, China's huge demand for iron ore, so that China should be able to decide to get a suitable price.
Vale: negotiations are still in progress
23, the vale of Brazil has denied reports that prices have been negotiated with some of China's steel mills. Relevant responsible person said, "has not yet reached any iron ore prices with any Chinese steel prices in 2009, the negotiations are still ongoing."".
21, media reports said, CVRD and some iron ore prices in China iron ore agreement benchmark price has been negotiated, will be based on the preferences of Chinese customers signed a long association contract or spot sales. Vale said it would be a "translation error" and that once the company reached an agreement with China, it would make public for the first time.
According to the customs statistics of 22 days, in June, China imported 12 million 210 thousand tons of iron ore from Brazil, an increase of 55%, most of which came from vale. This increase exceeded China's iron ore imports, "the first country" australia.
China needs to master the right to speak pricing
It is reported that, at present, the world's three largest iron ore suppliers, Japan, Korea and European companies have signed a price agreement with Rio Tinto and vale, the Australian mine fell by about 33%, Brazil ore fell to 28%.
As always in a passive position in iron ore pricing, and huge market demand, 2003 - 2008, Chinese steel enterprises suffered six defeats in the iron ore price negotiations, the price for spending about 700 billion yuan, more than 2 times over the same period equivalent to the sum of profits Chinese steel enterprises. The two negotiation in 2005 and 2008 resulted in a huge loss in China's iron and steel enterprises as a result of the huge price increase.
In 2008, China imported about 4.5 tons of iron ore, accounting for 52% of the world's seaborne iron ore, while Japan accounted for about 12.3% of imports and 6% of South korea. Therefore, China should enjoy the bargaining power of this raw material, and the Chinese price and the pricing mechanism of China should be paid more attention to in the negotiation of iron ore. Analysts pointed out that this year's iron ore negotiations, the Chinese side from the beginning to take the initiative tough strategy, China Steel Association made it clear that the negotiations would rather break, nor compromise. The position of China, its reason is nothing from: one, in trying to reverse the unfavorable situation, as the importer has long been unable to grasp the pricing power of two, if iron ore prices have dropped to a reasonable position, will make China steel enterprises large losses "in consideration of the reality. Dongguan city hit three Hardware Plastic Co. Ltd., motor shell, fan nets, silicon steel sheet, iron core, washers, rubber nail (www.pdxloan.com)