The China Iron and Steel Association (CISA) has stated on its website that it is in agreement with the strong opposition of the European Confederation of Iron and Steel Industries (EUROFER) to the iron ore producers' plans to increase iron ore prices by around 80-90 percent.
Brazilian miner Vale is seeking to implement major increases in its spot prices for iron ore, which will also be to the detriment of the long-term benchmark price system. Vale has suggested a rise of over 90 percent for Japanese steel enterprises. Thus, the price of Brazilian ore in 2010 could climb up by 90-100 percent compared with the 2009 price for Japan and South Korea.
An insider has indicated that some large Chinese steel producers have already received notification of price increases from Vale. The CISA immediately decided to hold a meeting to discuss the issue.