Brazilian CVRD to increase its iron ore sales into China

Brazilian CVRD to increase its iron ore sales into China

According the recent news in the sector, Brazilian mill CVRD (Companhia Vale do Rio Doce) has altered all its short-term contracts and iron ore supply arrangements with Chinese steel producers into long-term deals. Certain producers, to which CVRD supplies iron ore are namely Baosteel, Handan Co, Tangshan Steel, Manshan Steel and Beitai Steel. Apart from these, the company supplies twenty producers in China. CVRD, which sold 18 million tons of iron ore to China last year, forecasts this rate to reach up to 20.8 by the end of 2003. The officials from the company state that they are lucky to sell iron ore to China, as the company lacks sufficient iron ore reserves, moreover the country's need of steel is incessantly increasing. When the figures of iron ore imports into China are examined, it is observed that the imports have been increasing. The figure, which was recorded as 112 million tons last year, will amount to 145 million tons according to 2003 year-end forecasts.