China: Chinese steel makers want cheaper Brazilian iron ore

13 January 2009

Shanghai, China, 13 Jan – China’s steelmaking companies plan to request a 40 percent reduction on the price of iron ore from Brazil and Australia due to be delivered as of April, according to financial newspaper Shanghai Securities News.

“The essential requirement for the Chinese steel makers is that the price of iron ore falls back to 2007 and 2008 levels, which means that Brazilian mining companies need to cut the price by at least 39 percent and the Australian mining companies by at least 45 percent,” the paper said.

The global steel making industry suffered a strong drop in demand at the end of 2008 and opened the way for steel makers to request lower prices for iron ore. (macauhub)