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.