No conclusion on iron ore negotiations yet

SteelOrbis Shanghai The fourth round of international iron ore price negotiations that began last week has not come to a conclusion yet. The relevant people in China's Iron and Steel Association stated that the price negotiation might be prolonged to May unless reasonable prices are determined. Prolonging the negotiation is beneficial for Chinese steel mills. The investment in iron ore mining in China since 2003 has started to give fruits with an increase in iron ore supply, imposing more and more pressures on the market. Therefore, prices in the Tangshan region of China have started to drop slightly. Meanwhile there are some rumors stating that China might get iron ore from North Korea. Furthermore, Indian iron miners and Chinese steel mills will discuss on making long-term contracts instead of spot sales during a conference to be held in China's Qingdao city during April 13-14. On the other hand, rumors stating that Indian government may restrict the iron ore export to China are against Chinese steel mills because India –being the second largest iron ore import source for China- plays a vital role in China's iron ore import supplies. However, the possibility of a restriction is slim. European or Japanese steelmakers may not be as patient as their Chinese counterparts and decide signing agreements with major iron ore suppliers earlier due to the strong global steel market.