The Japanese steel producers recently agreed on a 90 percent increase in iron ore prices with Brazilian iron ore giant Vale on short-term contract basis, and, accordingly, the Japanese mills are said to be busy adjusting their sales strategy.
In response to these developments, on April 2 the China Iron and Steel Association (CISA) is reported to have privately assembled domestic steel mills and traders with iron ore import qualifications at a meeting in Beijing with the aim of discussing possible countermeasures in the ongoing iron ore negotiations.
Domestic steel industry insiders speculate that the meeting will likely focus on two main problems: the strategy on how to persuade the iron ore suppliers to maintain current contract lengths, and also adjustments of current steel production modes based on any possible changes in the iron ore pricing system.