It is reported that Australian miner Rio Tinto has offered a temporary 20 percent price cut to Asian steelmakers after annual contract negotiations stalled.
Accordingly, Rio Tinto has offered a 20 percent price cut for iron ore fines, the benchmark product and 25 percent for iron ore lump. However, Chinese mills rejected the discount as too small.
As SteelOrbis previously reported, the China Iron and Steel Association insists on a cut of at least 40 percent, pressing iron ore producers to cut 2009 contract prices to below 2007 levels. The reduction would constitute the first price cut in the contract prices in seven years.