According to Westpac’s senior economist said yesterday, China steelmakers would like to start iron ore price negotiation with BHP Billiton and Rio Tinto before Chinese Government’s US$ 586 billion stimulus package to be effective
China was eager to settle on 2009-10 supply contracts since the spot iron ore prices might be going up and China’s economy is expected to be benefited by the stimulus plan.
There is no comment from BHP Billiton and Rio Tinto yesterday. The negotiation would be tough since some steelmakers are asking for the low price as much as 80 percent cut on benchmark price.
However, most miners have cut production so the price cut is expected to be around 20~ 50 percent. Source: Yieh.com
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Sunday, January 11, 2009
15:24 |
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