Steelmakers to delay iron ore, coking coal shipments
Because the steel demand has fallen by a wide margin, global major steel mills contacted raw materials supplier, one after another recently. They are claiming that prices will be negotiated again. In some cases contracts delayed or have been canceled.The second largest steel manufacturer in the world, Nippon Steel is said to require mine enterprises to cancel some iron ore and coking coal deliver.
Meanwhile, Sumitomo Metal Industries and Kobe Steel is reportedly considering to cancel some deliveries as well.
ArcelorMittal is also asking Germany’s scrap suppliers to cancel deliveries. Indian steelmakers are requesting for a discount for coking coal. Australian and Brazilin mills have seek to cancel iron ore and coking coal deliveries.
To retain customers, raw material suppliers have expressed that they are very willing to discuss the supply quantity with buyers. The United Bank of Switzerland predicted that the iron ore price will drop by 40 percent in 2009.
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