Platts reported that, during the official launch of the USD 3.6 billion steel slab plant JV between Baosteel and CVRD, an executive with Brazil's CVRD told Platts that contract negotiations over iron ore prices for 2008 have not yet begun. The executive said that "It is too early to start talking about that right now."

Mr Roger Agnelli president & CEO of CVRD said that global iron ore exporters are already producing at top capacity to supply China with iron. Mr Agnelli noted that CVRD's iron ore shipments to China have nearly quintupled over the last half decade, to 100 million tonnes from around 22 million tonnes five years ago.

However Mr Agnelli declined to address iron ore contract pricing for 2008. Mr Agnelli said that “It is too early."

The 2007 price negotiations between Baosteel and CVRD led to a 9.5%increase that set the pattern for other major steelmakers. China's Baosteel had represented the other Chinese mills in late December last year. The fairly swift settlement between CVRD and Baosteel represented a departure because contract prices for global iron ore pacts had historically been set by the outcome of negotiations between the three major iron miners and the Japanese integrated steel mills.