With the annual iron ore contract price talks still continuing, voices appealing for a strong reduction in the iron ore price are heard in all directions. However, one of the leading Chinese steelmaker, Hebei Steel Group, has stated that too low a price for iron ore would not necessarily mean an attractive profit increase for the domestic mills, but instead could end up compressing the survival space of domestic miners in China.
A spokesman for Hebei Steel Group stated that the recent plummeting of import iron ore prices has already constituted a threat for the domestic miners, especially the small and medium sized iron ore companies. Once these companies are driven to bankruptcy, the spokesman said, the domestic steel producers would rely more heavily on overseas resources, and this would constitute a disadvantage for next year's annual talks.