The China Iron & Steel Association, which represents China's large-sized steelmakers, will send representatives to participate in pricing negotiations for the 2009 long-term iron ore contracts in a bid to lower the supply prices as much as possible, said its secretary general Shan Shanghua yesterday.
However, Chinese steel giant Baoshan Iron and Steel Group Co., Ltd. (Baosteel Group) is still the only negotiator with the world's three big iron ore companies, namely, Vale, Rio Tinto plc and BHP Billiton Limited.
China is expected to seek a unification of import prices of iron ore bought under long-term contracts and spot contracts.
In a bid to coordinate interests of domestic iron ore consumers, the country will set up a mechanism allowing traders and large-sized steelmakers with import licenses to act for smaller steelmakers in importing iron ore, said Mr. Shan.
For the mechanism, Chinese steelmakers plan to sign a convention to prohibit reselling of iron ore purchased under long-term contracts.
Source: Sinocast Daily
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