Reuters reported that talks on a benchmark 2009 iron ore price are likely to end next month, setting a price somewhere between 2007 and 2008 levels.
Mr Andrew Forrest CEO of Fortescue Metals Group said that "I expect it will come in between 2007 and 2008 prices. That will leave enough margin on the table to keep the iron ore industry going and it will also mean. China becomes more and more competitive."
Mr Forrest said that global miners and steel firms are locked in annual talks to settle iron ore term prices for the year starting on April 1st and analysts are lowering their price forecasts as a slowing global economy is set to cut steel output sharply.
He said that "It could go on all the way through April and May and I would expect by May it would be finalized."
Mr Forrest's prediction of a May deal, however, suggests the miners are confident China's steelmakers will want to lock in prices, as the country's economy is showing signs of picking up.
He said that China's iron ore market will continue to grow strongly in the next few years.
SourcE: Reuters
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