July 2009 | Coated Steels
China agrees to 33% iron ore price cut – Why? And what are the consequences?
China’s largest steelmakers have reportedly agreed to a 33% reduction in benchmark iron ore fines prices for the first half of the 2009-2010 financial year (April-October). The reduction is far less than the 40-45% price cut that Chinese mills have been demanding since late last year when international steel prices collapsed.
China agrees to 33% iron ore price cut – Why? And what are the consequences?
China’s largest steelmakers have reportedly agreed to a 33% reduction in benchmark iron ore fines prices for the first half of the 2009-2010 financial year (April-October). The reduction is far less than the 40-45% price cut that Chinese mills have been demanding since late last year when international steel prices collapsed.
An agreement on these terms would represent something of loss of face for Chinese steelmakers. This is the third time they have led benchmark talks with the iron ore majors, and the settlements reached on the last two occasions have implied compromise on the part of the steelmakers. In 2008,...
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