subject: Japanese And Korean Steel Mills Accept The 65% Gain In Mining Enterprises, "meaning Is Still Unknown [print this page] Sustained more than three months of the 2008 International Iron ore Preliminary results of yesterday's talks finally, Nippon Steel and Posco has announced the company has, and one of the three major iron ore suppliers, Brazil's CVRD (VALE) reached an agreement to Itabira fine ore prices per ton 78.90 U.S. dollars, since the implementation on April 1, or 65%. Reporter was informed yesterday from an authoritative source, Baosteel and CVRD's iron ore talks have not ended, continue to be in Sanya, Hainan.
Vale to competitive prices It is noteworthy that CVRD is not satisfied with the rate of increase 65%, proposed to reflect differences in treatment at competitive prices, Caracas powder for high-grade ore, powder ore in the southern 65% increase Based on the additional 6% per ton increase, to 71%. CVRD announced on yesterday night, according to the agreements reached, powder ore, powder ore rose 65% in the south, offshore price of 1.1898 U.S. dollars / dry tonne degrees, Caracas fine ore to 1.2517 U.S. dollars / dry tonnes of degree. According to rough calculation, Caracas powder in accordance with the 71% increase to last year, based on FOB prices rose 34.8 U.S. dollars.
It is reported that JFE Steel, Japan's third-largest Brazilian company also reached a similar agreement. Currently, three major iron ore suppliers BHP Billiton other two companies and Rio Tinto had not reached a related agreement with the steel mills.
O Mine still freight compensation Said in a statement yesterday, Rio Tinto, CVRD and steel mills have been informed of relevant agreements reached by the first, Rio Tinto and steel mills, negotiations are still continuing and Rio Tinto are also be looking for more details on the price negotiation , in particular the price of fine ore Caracas, because this is the benchmark reference for Rio Tinto products. Industry analysts, Caracas, Rio Tinto if mineral powder according to the price increase with China signed its gains may reach 71%.
Tinto stressed, "No matter what the above results of the negotiations, Rio Tinto and other major customers in Asia for sea freight on the convenience and advantage to continue negotiations." From this, Rio Tinto in iron ore shipping the issue of compensation payments will continue to negotiate with Baosteel, China Shipping for Australia to replicate this to the Chinese shipping price cheaper than 50%.
BHP Billiton head of China also told reporters yesterday, BHP Billiton and Baosteel is still underway, the company related to the current situation, no comment.
Baosteel say officially received the relevant information is not currently. China Iron and steel industry Responsible person to confirm this association after the reporter said that many years of iron ore to Chinese steel prices have brought the cost of pressure, based on the past situation, or not be so high, the China Steel Association also Baosteel will wait for the outcome of the negotiations.
Baosteel no comeback possible?
Joint metals analyst Hu Kai said that 28 years have been implemented in accordance with the rules of negotiation, the world's mining and steel company Nippon Steel and CVRD should accept the results of the negotiations, Baosteel is almost no turnaround was possible, but the Australian mining the introduction of price index and search for ocean request for compensation, also may negotiate breaks down into the end of the Chinese enterprises can be considered mixed. According to another report, Nippon Steel and CVRD reached 65% only in respect powder ore price increase agreement, lump ore and pellet prices are not sure, China can still search for these two species on the lower range of prices, 2007 fine ore prices rose 9.5%, while the price of pellets increased only 5.28%, in 2006, powder ore prices rose 19%, pellet prices dropped 3%, so the negotiation of China there are many elements, not yet fully concluded.
Japanese And Korean Steel Mills Accept The 65% Gain In Mining Enterprises, "meaning Is Still Unknown
