Hong Kong Stocks Rose In March To Iron Ore Negotiations Scales In Favor Of Steel - Iron Ore, Iron

Held in Shanghai yesterday, "2008 Symposium iron ore world market"

, the number of participants said that while Baosteel and BHP Billiton, Rio Tinto's new round of ore price negotiations still in stalemate stage, but the domestic iron ore import and export trade data and market Iron ore price Trend may be going to help change the direction of Baosteel negotiations.

China CCCMC Yuanjiang Wang, vice president, said Baosteel not present with the two long-term contract extension to 2008, the price agreement, the two should be the extension has already claimed gains Caracas fine ore CVRD consistent , which rose 71%, and requested the Asian steel mills to be extra shipping compensation; But in the face of declining profit margins and the second half of the expected decline in steel prices likely to domestic steel mills can not accept this request. Wang Yuanjiang said, "As usual, the two extension will follow the fiscal year 2007, extended supply of iron ore price 3 months to July, if not yet negotiated, the price for the relevant parties will be canceled, continuing years of negotiation mechanisms will be break. Once the spot price supplier, last year's Australian iron ore imports in volume terms, domestic steel companies will lose 11.7 billion U.S. dollars, but also by the great damage downstream enterprises. "

Ore surplus in the first quarter

However, the industry did not pessimistic about the outcome of negotiations Baosteel, China Metallurgical Mining Enterprise Association, Zou Jian said that in 2007 China imported 380 million tons of iron ore, although the absolute value is growing, but growth has been continuous three years of continuous decline, then increase ore imports down 23% over 2004. He told reporters at the sidelines of the conference, due by the end of February a new round of international iron ore price agreement reached by high-rise, do bring iron ore prices in February; but since entered in March, prices began to drop ore, ore imports CIF From February to 129.5 U.S. dollars fell to 125 dollars, plus the domestic ore supply exceeds demand before the March number has reached 10 million tons. If this trend is extending for one month and two for the extension is currently in negotiations during the standoff undoubtedly very beneficial to Baosteel.

Yuanjiang Wang also said that although the next few years, the three international mining giants monopoly remains unchallenged, but the country, including several million tons of mining projects will yield production, ore imports will effectively relieve the pressure. Zou Jian

forecast steel prices in the first half of 2008, although it will rise, but will face a decline in the second half of the year in the overall price will be lower than in 2007, 2008, the market price of iron ore from 1200-1500 yuan / ton, down to 900-1000 yuan / ton.

Experts at the meeting said that the current iron ore, coke and other raw material prices have severely affected the profitability of steel companies, steel prices are not so completely digested before the downstream firms, do not have a substantial iron ore price up conditions, high pressure callback even greater consolidation. In the consolidation period, in the face of financial pressure, lower steel prices is not a strong desire to purchase some small iron ore trading companies exist to sell iron ore at a lower price may be.

3 months of imports 58 million tons of ore port stocks

Chinese mineral ores limited liability company, general manager of high-Wei disclosed yesterday that since the beginning in early March, to run iron ore market weakness, volume shrinking, in late March, slightly lower iron ore prices, but volume is still no amplification, China imported iron ore port in March the average stock has reached 58 million tons.

High-Wei that the iron ore market, the reasons for this phenomenon is due to iron and steel enterprises in recent years funds face tight, raw material cost pressure, coke and other raw materials and fuel prices and insufficient supply of significant factors such as iron and steel production in China slowdown, the resulting domestic iron ore production and ore import growth far greater than the iron ore production growth phenomenon.

It is reported that China was widely expected this year, crude steel production at 5.2 million tons, lower than the growth rate of 10% in 2007.

by: gaga

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