October 11, 2008

Iron ore price negotiations – CISA viewpoints on result

CISA make the following viewpoints on result of 2008 benchmark ore price talks.

1. China Iron & Steel Association and China's steelmakers recognize the price settled between Vale and Baosteel which conforms to international iron ore trade rule and the convention.

2. On account of ore price jump, Chinese steelmakers are faced with increased costs. It's thus hoped the steelmakers would advance tech content of the steel products by reinforcing scientific progress and technical innovation and raise proportion of high value added products by making more high end products on the mean time, strengthen management and reduce consumption of energy and resource for boosting the competitive edge.

3. With fuels and materials such as iron ore, coke, coking coal and crude oil all rise in price, steel prices in China and the globe as a whole would keep high perched this year.

4. It is desired by steel industry growth to build a long term and reliable iron ore and coking coal supply chain. Chinese steelmakers should further expand cooperation with the left world enhance overseas investment or stake taking to ensure material supply sources.

(Sourced from MySteel.net)