SteelOrbis Shanghai
SteelOrbis has learned that the China Iron and Steel Association (CISA) and its member enterprises are to sign an agreement regarding the resale of iron ore bought on long-term contracts, at a meeting to be held in the northern Chinese city of Tangshan on January 15.
The agreement in question will stipulate that both state-owned and private sector enterprises, whether CISA members or otherwise, will have to use iron ore bought on long-term contracts for their own consumption; however, as regards excess materials, enterprises may only sell them at the contract price plus an additional three-to-five percent of the contract price. As for enterprises who break the agreement, a warning will be issued on the first occasion; however, the second time, permission to import iron ore on long-term contracts will be revoked.