Iron ore price dispute between Vale and China turn white-hot

Iron ore price dispute between Vale and China turn white-hot

It’s reported that Brazilian Vale, the largest iron ore giant, just toughly cut-off their supply and refuse to load Chinese ore ships while Chinese steel mills protest with reduction on price and output.China largely depends on iron ore imports, among which the import from Brazil accounts for 22 percent of the total 270 million tons for the first eight months of this year, according to LGMI statistics.

Though China’s steel groups have accelerated their acquisition of overseas iron ore mines, but still insufficient to the large domestic demand. On the other hand, the recent overall price cut announced by Chinese steel mills led by Baosteel, plus the flexibility of output adjustment, push this price dispute to climax.