China takes advantages on iron ore price talk

Iron ore price negotiation - China takes advantages on iron ore price talk

China steel mills started the negotiation of 2009 iron ore prices last week with Brazil’s Vale and Anglo-Australian BHP Billiton and Rio, the three largest miners in the world. So far it is still vague in the closed door meeting, but global analysts arguments show a positive anticipation for the steel mills.
Mr Shan Shanghua secretary general of the China Iron and Steel Association holds an argument that since steel prices have fallen to levels of 1994 in the global recession and weakening demand, iron ore prices should be reduced accordingly.

Mr Rana Som chairman of Indian largest iron ore producer NMDC last week said that “There is no possibility of the mineral prices going up.”