Thursday, April 23, 2009

Ansteel - Iron Ore Talks At An Impasse

Anshan Iron & Steel Group's president said there has been no result in the annual iron ore pricing talks.

Zhang Xiaogang said there wasn’t yet a conclusion on expectations for the new contract iron ore price, which will apply in the 12 months starting April 1.

But he said that it was a difficult time for everyone in the steel sector and that he would appreciate the opportunity for iron ore miners and steel mills to “work together and cooperate”.

Mr Zhang, in Perth to meet Western Australian Premier Colin Barnett and executives from its Australian joint venture partner, Gindalbie Metals, said that he plans to meet with Rio Tinto executives on Friday and pricing will be discussed.

Mr Zhang also emphasised the financial stresses being experienced by Chinese steel makers.

“I believe that, starting from April this year, every single steel maker in China was making a loss,” he said.

Mr Zhang said that Australian government approvals for Ansteel’s $162 million investment in Gindalbie are taking "a fair bit of time" but he said clearance for the deal from the Foreign Investment Review Board will be "coming very soon."

Ansteel is China's second largest steel maker by output.

Source: The Australian

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