According to Shanghai Securities News reported that delays in the international iron ore negotiations outstanding, together with the market downturn, iron ore pricing system has a more complicated situation. 21, one of the three major mining company Vale do Rio Doce issued a statement the company said in 2009 iron ore contract discount will be taken to the provisional implementation of such a flexible manner, that is, 80% of the price paid in cash and another 20% of the purchase price will be in 2009 after the end of the year to pay the price negotiations.
CVRD said the agreement will be applied in 2008 as a provisional cost of the standard charges, in 2009 after the end of the standard cost discussions will be founded on the outcomes of their adjustment. As is customary, CVRD and Asian iron alloy charges will be the standard cost discussions in the April 1 each year, but have not glimpsed any of the present negotiations. The past year in the new cost is not provide and demand edges are pre-released last year resolved a long ADPL charges, but the market worsening this year, mine was to make concessions.
CVRD Zhu, leader of China said it would leave the long-HS cost first right to discuss the price. “We are the motor, and now we propose to back the.” Zhu said, the business will boost this year to 25% decrease, while expanding sales efforts in China. He accepts as factual that CVRD’s goods more comparable in China, as more large-scale excavation businesses a cost benefit is anticipated to cost about 100 million tons of metal ore provide will be more comparable manufacturers in lieu of.
It is understood that the first quarter of CVRD’s iron ore to Europe dropped by almost half, while iron ore exports to China increased by nearly 40%, because of its steel mills and China signed a number of small and medium-long contract for the supply of ore Association.
In detail, it is furthermore the CVRD excavation business in Australia to pursue the trading strategy. According to acquainted causes, the present excavation business in Australia to China Steel’s sales scheme was “long-term affirmations on iron alloy, 80% of improvement to non-agreement is 60% of families, non-agreement is the culmination of the client, or a new affirmation to signal the affirmation iron alloy mills, excavation businesses are at the identical time location market sales, a lone suggested, nearly tender, bigger than the rudimentary is to get a cargo. ”
Association in accordance with the 2008 prices of the year long, Australia 63.5% of the powder grade ore FOB prices for 91.6 U.S. dollars / ton, 76 U.S. dollars for Brazilian ore / ton. Tang Qi, general manager of Wuhan Iron and Steel Group, Lin said that the end of last year also if the Chinese steel mills in 2008 in accordance with the Association of the long procurement of iron ore prices will not survive.