Rio claims a 40-percent price rise in iron ore negotiation
2010-02-04 09:14:40Source:People′s Daily OnlineAuthor:
The first round of iron ore pricing negotiations between Rio Tinto, Japan and S. Korea has finished, and Rio Tinto looked forward to a 40-percent price rise, today's 21st Century Business Herald cited an Australian businessman who is close to Rio Tinto and BHP Billiton.
"Japanese and S. Korean steel producers acknowledged the up-going trend of iron ore prices," said the businessman.
Chinese steel mills argue that they gain very little profit, but the iron ore producers believed that China's demand for iron ore will continue to rise in 2010 and have started to increase their capacity.
Li Xinchuang, vice president of China Metallurgical Industry Planning & Research Institute, said in a recent report that the capacity of China's steel industry will rise in 2010. Last year China produced a record 700 million tons of steel.
Currently, Japan and S. Korea have not accepted the 40-percent price rise, but they have "showed no rejection," said the Australian businessman.
"Japanese and S. Korean steel producers acknowledged the up-going trend of iron ore prices," said the businessman.
Chinese steel mills argue that they gain very little profit, but the iron ore producers believed that China's demand for iron ore will continue to rise in 2010 and have started to increase their capacity.
Li Xinchuang, vice president of China Metallurgical Industry Planning & Research Institute, said in a recent report that the capacity of China's steel industry will rise in 2010. Last year China produced a record 700 million tons of steel.
Currently, Japan and S. Korea have not accepted the 40-percent price rise, but they have "showed no rejection," said the Australian businessman.
