Home / Business / Metals Tools: Save | Print | E-mail | Most Read | Comment
Three favorable factors give Chinese steel mills edge amid price
Adjust font size:

A global iron ore oversupply, lower spot prices, and huge stockpiles in China's domestic iron ore market will improve the odds of Chinese steel mills in securing more cuts in its iron ore price negotiation with overseas suppliers, Du Wei, an Umetal analyst told Xinhua Thursday.

China Iron and Steel Association (CISA) refused on May 31 to accept the iron ore price cut between 33 percent and 44 percent reached between Rio Tinto and Japan's Nippon Steel Corp, and insisted on a price cut of more than 40 percent in the annual contracts of iron ore.

Analysts and insiders believe an estimated global excessive supply and a considerable decline in demand impose great pressure on the miners amid the economic downturn.

"The global iron ore supply surplus is estimated to be between 200 million and 300 million tonnes," said Luo Bingsheng, vice chairman of the CISA in Shanghai Tuesday.

Total iron ore demand is expected to drop between 150 million and 200 million tonnes this year, according to Xu Xiangchun, chief information officer of Mysteel.com Wednesday.

Luo also said China's steel maker would turn to the spot pricing, abandoning the benchmark price system, if the suppliers deny its 40 percent to 50 percent price cut request.

"Despite a 33 percent price cut, the long contract price is still 8 to 9 U.S. dollars higher than the spot price," said Du Wei.

Huge stockpiles should prompt China's steel makers to call for a bigger cuts in iron ore prices in the progressing negotiation, Du said.

The latest data from the www.umetal.com shows that iron ore stocks at Chinese main ports exceeded 70 million tonnes as of May 31.

Du estimated that China's overall stocks had surpassed 110 million tonnes in consideration of 30 million tons of stocks by steel plants.

However, analysts and insiders believe the negotiation will drag on beyond the end of June.

According to Luo, China's steel mills lost 5 billion yuan (732 million U.S. dollars) in the first four months this year.

If the CISA compromises, the long contract price would be set at a high level during the peak season, and China's steel plants would suffer more in profit loss resulting from high costs, said Du.

"We have not set a deadline of when the negotiation would end. Even if the two sides had not reached the deal by the end of June, it would not affect the production of China's steel plants," said Shan Shanghua Wednesday.

(Xinhua News Agency June 5, 2009)

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Comment
Pet Name
Anonymous
China Archives
Related >>
- Iron ore rate cut 'plan' in the bag
- China's steel mills reject Rio Tinto-Japan iron ore price cut
- China rejects iron ore terms accepted in Japan
- China considers setting iron ore price index
- CISA: Iron ore price talk still ongoing
June 7 Tokyo 2nd China-Japan High-Level Economic Dialogu

June 30 Shanghai 2009 Automotive Engine Technology Seminar

July 3-4 Beijing Global Think Tank Summit
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
主站蜘蛛池模板: 无码日韩精品一区二区免费| 欧美日韩亚洲一区二区三区| 国产偷久久久精品专区| 80s国产成年女人毛片| 宅男66lu国产乱在线观看| 久久久久亚洲av无码尤物| 最好看的2018中文字幕高清的| 亚洲欧美一区二区三区综合| 男男gvh肉在线观看免费| 成人精品一区二区久久| 久久无码人妻一区二区三区| 欧洲精品免费一区二区三区| 亚洲欧美在线观看| 激情综合色五月六月婷婷| 免费国产黄网站在线观看视频 | 亚洲AV无码有乱码在线观看| 欧美性生活视频免费| 亚洲欧美日韩精品在线| 波多野结衣一区二区三区高清av| 免费久久一级欧美特大黄| 精品哟哟哟国产在线观看不卡| 国产99在线播放| 色偷偷一区二区无码视频| 国产乱妇乱子视频在播放| 韩国三级在线视频| 国产国产人免费人成免费视频 | 欧美人与物videos另类xxxxx| 亚洲欧美日韩国产精品一区二区| 波多野结衣欲乱上班| 人妻少妇偷人精品无码| 成年人在线看片| 国产精品va在线观看手机版| 2一8一teesex| 国产精自产拍久久久久久蜜| 999久久久无码国产精品| 图片区另类小说| 99riav国产在线观看| 在线观看一区二区精品视频| Av鲁丝一区鲁丝二区鲁丝三区| 天天爱天天色天天干| bl道具play珠串震珠强迫|