September 08, 2008

Iron ore price negotiations – High spot prices to push next year levels

Mr Lain Minjie GM of Sinosteel Mining during 2007 China International Mining Conference said that “Owing to current abnormal price of spot iron ore, global iron ore would witness further contract price rise.”

Mr Lian however stated that “Due to iron ore production capacity expansion, China would add at least 60 million tonnes of iron ore in 2009 and even after 2009, China could gain 60 million tonnes of fresh output growth each year; at 10% of pig iron shipment rise, China iron ore output will increase 7% with import up 13% to 440 million tonnes.”