Mining Journal reported that Chinese steelmakers are insisting on a price cut of up to 50% for iron ore imported from Brazil this year.

Folha de S. Paulo, citing Mr Chen Hong, a Beijingbased analyst with research company JL McGregor & Co said that “Chinese steelmakers have a strong bargaining position because they have large stockpiles of the raw material.”

Folha reported that an accord may be reached by the end of June,

The Chinese Iron and Steel Association said in a statement it rejected the possibility of Chinese steelmakers reaching an accord with Brazilian iron-ore producers including Vale SA on similar terms to the 33% price cut agreed to last week by Japanese mills and Rio Tinto, the newspaper reported.

(Sourced from Mining Journal)