2009 iron ore negotiations started from the end of last year, the current round of negotiations have been several. Yesterday, the reporter learned from the China Iron and Steel Association was informed that the Chinese side continues to stress the new year price contract from January 1 from the Executive. Another informed source, the bottom line of the Chinese steel mills for iron ore prices should be back to the 2007-2008 level, namely, Brazil and Australia ore mines should be at least 39 percent, respectively, lower prices and 45% respectively.
Supply and demand of iron ore market dominance over the past five years the first time to the transfer of iron and steel enterprises. Prior to China Steel Association Secretary-General told reporters that steel prices fell sharply reflected in the price of iron ore long-term agreement, if only a small decline, certainly can not be justified, the Chinese iron and steel enterprises have also not unbearable. And Japan's second-largest JFE Steel prices president made it clear that this week, as the steel industry to the original sharp decline in fuel demand, iron ore and coking coal in 2009 / 2010 international prices of long-term agreement will be reduced to at least 2007 / 2008 price levels.
It is learned that the current negotiations have been on the Chinese side to discuss the bottom line, the attitude of Japanese companies, also shows that steel mills in the negotiations, calls for a substantial price determination.
One of three major Australian mining company Rio Tinto announced a 10% cut after this week to restart its iron ore project in Western Australia, 11 mine employees to report for duty after another, and its associated rail transport projects also reopen.
Australian iron ore developer Murchison (has been acquired by the China Steel Corporation) has also said that the iron ore market, there are some signs of improvement, the company will continue to register the long-term sales. The fourth quarter of last year remain in the Western Australia iron ore mines shipped as usual.
As the international dry bulk shipping market crash after a few months hit a 6-year low. This has led to Australian ore and Brazilian ore landed a new post. It has been calculated that in 2008 rose 65 percent after the price of Brazilian iron ore Offshore 77 U.S. dollars / ton, coupled with the current 10 U.S. dollars / tons of freight, CIF value for 87 U.S. dollars / ton; up 79.88 percent of iron ore from Australia after shore price of 89 U.S. dollars / ton, plus the current 5 U.S. dollars / tons of freight, CIF value for 94 U.S. dollars / tons, the Brazilian iron ore than the high-five U.S. dollars / ton, 5.6 percent margin.
Joint metal analyst Hu Kai that, in accordance with the ore price negotiations in 2008 the principles embodied in the great post freight, Australian mining companies because the products CIF low, or additional compensation. At present, the Australian mining company's products have been higher than the CIF price of Brazilian iron ore, iron and steel enterprises in China asking for the abolition of the sea freight compensation entirely reasonable and in line with the 2008 both sides accepted in principle. At the same time, the Chinese have every reason to demand the Australian iron ore prices should be lower than the Brazilian iron ore prices fell an additional.