China’s Baosteel agrees iron ore price with world’s 3 largest suppliers

26 December 2006

Shanghai, China 26 Dec – Shanghai-based Chinese steelmaker Baosteel Friday agreed the iron price with mining groups BHP Billiton and Rio Tinto, following a previous agreement with Brazilian mining giant Companhia do Vale do Rio Doce (CVRD), officials said.

The price of iron ore supplied by the two Australian groups will increase 9.5 percent in the next fiscal year, Baosteel said.

The Chinese group carried out the negotiations on behalf of all the steelmaking companies in China and this was the first time it reached an agreement with the world’s three largest iron ore producers.

Baosteel has over 30,000 employees and its 2005 production exceeded 20 million tons of steel. (macauhub)