Top Biz News
China's iron ore imports slow down
(Xinhua)
Updated: 2006-10-25 09:04
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After iron ore prices surged 71.5 percent last year, costing China -- the world's largest iron ore importer -- an additional 570 million US dollars, the country has been demanding a bigger say in setting global benchmark prices.
China has been very active in negotiations with top international providers Companhia Vale do Rio Doce, BlueScope and Hammersley Iron. It only reluctantly agreed to a further 19 percent rise in iron ore prices this year.
"A new oversupply situation is brewing. Iron ore prices are going to slip back," Lu said.
Price hikes for four consecutive years have been a windfall for mine owners. However, iron ore consumers such as steel mills had to struggle with razor-thin profitability margins and the risk of losing money, he said.
Lu said that the world's major suppliers and consumers should all take a long-term approach and establish a "stable and healthy cooperative relationship" in price negotiations.
"We hopes all parties will team up with Chinese enterprises to secure rational and reasonable raw material prices, safeguard a fair global trade order and achieve common prosperity," he said.
China has been very active in negotiations with top international providers Companhia Vale do Rio Doce, BlueScope and Hammersley Iron. It only reluctantly agreed to a further 19 percent rise in iron ore prices this year.
"A new oversupply situation is brewing. Iron ore prices are going to slip back," Lu said.
Price hikes for four consecutive years have been a windfall for mine owners. However, iron ore consumers such as steel mills had to struggle with razor-thin profitability margins and the risk of losing money, he said.
Lu said that the world's major suppliers and consumers should all take a long-term approach and establish a "stable and healthy cooperative relationship" in price negotiations.
"We hopes all parties will team up with Chinese enterprises to secure rational and reasonable raw material prices, safeguard a fair global trade order and achieve common prosperity," he said.