China's steel prices of iron ore negotiations, the risk of further Japanese plot – iron ore price negotiations on iron ore – steel industry

As 2005 Iron ore Price agreement, as in this year's iron ore negotiations, China Steel Japanese companies were once again the "plot."

8 am Beijing time yesterday, the Brazilian CVRD (VALE) announced on its official website with Nippon Steel, Posco agreed benchmark price of iron ore in 2008, fine ore, the Southern ORE up 65%, from 47.81 U.S. dollars per ton price increase to 78.90 U.S. dollars; high-grade ore powder Caracas was up by 71%. The price of this agreement into effect from April this year.

Repeat Japan's plot Baosteel Group insider told reporters yesterday to the Post, now Baosteel and CVRD also carried iron ore negotiations in Sanya, Hainan. However, as the first Nippon Steel reached an agreement with the global iron ore suppliers, "represented by Baosteel, China steel companies will have to accept this price." China Iron and steel industry Association Market Research Xian-Wen Chen, director, said yesterday that Chinese steel mills are likely to accept the price has been the first to reach the ore price increases.

In 2005 iron ore negotiations, as the first Japanese steel producers and iron ore price increases reached 71.5% agreement, Chinese enterprises will eventually be "swallowed their anger," to accept. In 2008 iron ore negotiations, the old screen is now repeated.

However, the global mining giants of the 65% increase seems to still not satisfied. Vale proposed to reflect differences in treatment at competitive prices, Caracas powder for high-grade ore, an increase of 6% gain, up 71%. As of last night writing, before the Vale latest news shows, this requirement has been met, included in the 2008 benchmark iron ore price agreement.

Why is Japan? Why is Japan, not China's Baosteel to obtain iron ore negotiations starting this year, right? Lenovo 2005 iron ore negotiations, China iron ore prices once again been Japan's "plot" of the sound repeatedly.

In fact, Japanese companies before the end of iron ore negotiations, once released "smoke bomb" to mislead the Chinese steel companies. If the Japanese steel mills had previously said that Japan's negotiations in 2008 will not rush an agreement with the supplier, will first wait and see China in the negotiation process. Thus, most organizations are convinced that Baosteel still the same as in 2007 led the negotiations and reach an agreement with CVRD.

"Japanese steel companies out of their own interests before deciding on the price, to rational treatment." Joint metal mesh analyst Hu Kai said, "During the negotiations, the Australian company introduces additional requirements, such as BHP Billiton, said the introduction of similar to the Australian coal trade reference BJ Steam Coal Index models, and adopt a flexible pricing mechanism, the actual intention is to break the existing long-term contracts. "

"Although Baosteel and China Steel Association, said publicly afterwards, to resist unreasonable demands on Australia's mine, but no clear measures to be misunderstood Japan. Coupled with poor communication between Chinese and Japanese companies, which may result in Japanese companies eager to The main factors to conclude the negotiations. "Hu Kai said.

It is understood that Japanese companies are 100% long-term contracts on the importation of iron ore, once the long-term contract system is broken by the impact is greater than its iron and steel enterprises in China. Although abandoned long-term contract as harmful to China, but also closer to the objective of the competitiveness of Japanese enterprises, the Japanese steel mills no longer rely on cost advantage, China Steel Because of cheap labor resources, may in the international Steel market More advantages than the Japanese. Lightness

while another analyst also believes that the annual iron ore negotiations in 2008, Baosteel pressure is very large, so that under the Japanese on price, just normal to see, use Business The idea to consider the issue, not a narrow perspective, "Who let the concentration of iron and steel enterprises in China is not high enough? Lack of steel Cooperation ? Between the neighboring countries of the steel with a solid alliance is not it? "

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