Namisa SA believes that current iron ore demand may just be restocking.
Mr Charles Lagana Putz president of Namisa said that the current resumption in iron ore demand may be artificial because of restocking and may last two months. After this period, the recovery will be slower, but first half sales in 2010 should be above 2009 levels.
Mr Putz also said that companies are looking at hybrid contracts to replace the current benchmark price mechanism for iron ore.
The 2009 benchmark price, traditionally agreed by June, still hasn't been settled as Chinese mills are holding out for larger discounts in light of the global economic crisis. Meanwhile, iron ore miners, such as Vale, have been giving provisional discounts of 20% on last year's price or selling on the spot market.
Mr Putz also said that Namisa is studying investing in the shipping market in order to have more competitive transport costs when selling iron ore on the Chinese market.