China eyes long-term contracts for Indian iron ore
Chinese Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) announced that some Chinese steelmakers would make a visit to
India in August in order to sign long term iron-ore supply contracts.
India accounts for 25 percent of
China's
iron ore imports, being the second largest
iron ore exporter to
China.
China used to buy Indian
iron ore on spot market and Australian ore with long-term contracts. However, the decline in steel prices led Chinese steelmakers to consider buying Indian
iron ore with long-term contracts instead of the Australian ore.
Current price of Australian
iron ore in
China is around $50/ton. The spot price of
iron ore from
India is currently $6 – 8/ton higher than the Australian ore price but Chinese steelmakers hope to obtain more favourable contracts from Indian
iron ore producers.
It's reported that Baoshan Iron and Steel (
Baosteel) and Wuhan Iron and Steel Group will also take place in the visiting group.