Friday, April 10, 2009

POSCO Wants 50 Per Cent Iron Ore Price Cut

South Korea's POSCO, the world's No.4 steelmaker, said on Friday that it was seeking a 50 percent cut in contract iron ore prices for the year started on April 1.

"The price gap is quite wide as miners are demanding a 20 percent reduction but we believe it has to go down by at least 50 percent from the 2008/09 level, as steel market conditions are very poor... We want to conclude the deal during April," POSCO vice president Kwon Young-tae, in charge of raw material procurement, told analysts and reporters.

Source: Reuters

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