According to available information yesterday, Chinese steel mills agreed the 33 percent price cut in iron ore with Rio Tinto and BHP Billiton which finally ended the iron ore price negotiation. Some big mills told Daily Business News that the current import price is 67 percent of last year's price. While deputy secretary-general of China Iron & Steel Association (CISA) Qi Xiangdong said that he did not know about the issue.

According to some analysts, the steel companies have returned to positive earnings because of the rising steel price in and out of China and also the increasing domestic demand of steel in China, thus it's impossible for the iron ore companies to setback. Besides, CISA may have to accept the 33 percent price cut ratio in the future.

An insider said that the three iron ore giants always set the price as 67 percent of that of last year for Chinese steel mills before they reached a long-term agreement with Chinese steel mills. That is to say that the Chinese steel mills have been accepting the 33 percent ratio.

Tang Steel and Wuhan Iron and Steel told Daily Business News that the long term price depends on the result of the negotiation between CISA and the three industrial giants.

For more information, please consult the original report in Chinese at:

http://www.nbd.com.cn/newshtml/20090716/2009071602541992.html

(China.org.cn by Li Xiaohua July 16, 2009)