Chinese mills resisting 19% ore price increase

SteelOrbis Shanghai China Iron and Steel Associaton (CISA) accused individual long-term iron ore price agreements by various mills in Asia and Europe damaging the interests of all steelmakers, and claimed that 19 percent increase was not acceptable by Chinese steel industry. CISA convened a meeting on May 19 with sixteen large steel mills in Beijing, where it opposed individual steel mills' breaching the price negotiation rules and accepting a 19 percent increase, which also brings pressure on Chinese steel mills. Chinese mills will not accept any decision that does not take Chinese market conditions into account, according to CISA. According to the sixteen mills in the meeting, 2006 iron ore prices should be based on the market condition in mainly China, and then other European and Asian countries.