Baosteel reduces prices to protest iron ore price rise
Without any warning, China's Baosteel has reduced its prices for November; in addition to responding to weak demand, the timing of this announcement is in line with iron ore price negotiations in the near term.It should serve as a message to protest price hikes by Brazil’s mines, said market analysts. Recently Vale has unilaterally breached contracts and intends to raise the price of iron ore to Asian customers. In early September, they told the factories in China and Japan that from September 1st, the price would be increased by 20%, based on the 2008 contract. This caused widespread dissatisfaction.Now Baosteel is leading in the lowering of steel prices. This will tell the mines that this is not the time to talk about the prices of raw materials.
No comments:
Post a Comment