subject: Iron ore talks still deadlocked experts called flexible mechanisms - iron ore negotiations, the iron ore price - iron and steel industry [print this page] Iron ore talks still deadlocked experts called flexible mechanisms - iron ore negotiations, the iron ore price - iron and steel industry
Year from April 1 Nisshin ore long-term performance of the Contract has been in the past nearly a month, the Australian mining companies and steel mills in China talks inconclusive, yesterday, the international iron ore market in 2008, during the workshop, many experts called flexible mechanisms, and forecast the price of iron ore and shipping down.
Flexibility: freight differentials or acceptable Yesterday, China Minmetals Chemicals Import and Export Chamber of Commerce Vice President Wang Yuanjiang pointed out that because Australia has been requested on the basis of the Brazilian ore prices reflect the "maritime fare," according to Brazil also want better quality ore rose to 71% pricing, but the face of declining profit margins and the second half of the expected steel prices may fall, the domestic steel mills can not accept this request. Therefore, the long-term agreement negotiated this year increased uncertainty.
If not yet completed negotiations in July, be abolished in a long association for the contract, turned to the spot market shipments, which will give China a lot of pressure, because the present spot in Australia Iron ore price 180 U.S. dollars / ton, while the 80 year long association price USD / t, if the negotiations break down, the domestic steel industry will lose 11700000000 U.S. dollars, while the victim may be the largest iron and steel industry, downstream firms.
China Iron and Steel Industry Association, director of market research Xianwen proposed agreement should strive to maintain the existing price mechanism long, try an early conclusion of an agreement with Australia, or even appropriate to show flexibility. Zou Jian said that the quality not as good as mine as Australia, Brazil, thus requiring 71% of the increase is unreasonable, but the Brazil to China's long-term shipping price is 25 ~ 30 U.S. dollars / ton, and Australia to China, compared to 11 U.S. dollars / ton , this difference if the other requirements in the long-term iron ore prices to reflect the new year is a certain rationality.
Cyclical: the first decline of iron ore price
In Iron ore talks While still in stalemate, the domestic spot iron ore CIF price of imports fell for the first time.
China Metallurgical Mining Enterprise Association, Zou Jian, chairman of that ore CIF price of imports in January was 127 U.S. dollars / ton, in February to 129 U.S. dollars / ton, while March saw a decrease of 4 U.S. dollars / ton, "This is mainly steel costs and the current high price of iron ore and the most unbearable suspension has a lot of imports, the data show that the first quarter of this year, 10 million tons of iron ore for more than required, if this trend can then adhere to one month, will help iron ore negotiations are still ongoing. "
Zou Jian also pointed out that growth in 2007 China imported ore has dropped more than 23 percentage points in 2004, which increase the proportion of Brazilian ore imports, and China reached 343 million tons of mineral product, for the first time over Brazil as the world. In 2007, China imported iron ore CIF integrated average 88.24 U.S. dollars / ton, 24.59 U.S. dollars higher than the same period last year / ton, or 38.63 percent.
He expects growth in 2008 China's iron ore imports will continue to decline, "the domestic iron ore market price from 1200 to 1500 yuan / ton down to 900 ~ 1000 yuan / ton." Also expected in the first half of 2008 International Shipping price will show high and volatile situation, a steady decline in the second half of likely market, prices generally lower than the year 2007 sea level.
The same time, Wang told reporters Yuanjiang, costs may rise in iron ore imports, while the second half of this year, steel prices may fall. Zou Jian also predicted, although the steel demand continues to grow in 2008, but the market supply exceeds demand, the situation is not optimistic.
