Iron ore imports likely to rise 7% next year

It is said that one of the three international mining companies Rio Tinto has informed the Chinese steel mills, said the first quarter of next year iron ore contract prices may rise 7.6%. China Steel Industry Association declined to comment on the process of iron ore negotiations.

Overseas news that Rio Tinto has been issued to the domestic prices of several major steel mills order. Rio Tinto is currently the general price is 128 U.S. dollars / ton, the first quarter of next year, probably rose to $ 138 / ton. Another source said that some Japanese steel companies and three international mining companies have been one of the first quarter of next year Vale iron ore price agreement, or about 7%.

Closed yesterday, the sixth in the Bohai Sea Forum and the steel market in 2010 at the Lange Steel Network, CISA vice chairman Luo tight-lipped about the situation of iron ore negotiations, not comment. He said last month the new year has begun negotiations on international iron ore supply and demand sides have begun to contact and exchange. The information on the current supply and demand sides unequal bargaining position does not seem to change.

Zhang Lin Lange Iron and Steel Research Center, analysts pointed out that under the previous forecast, the international mining companies will push up the price of the next quarter, nearly 7%. From the second quarter of this year, mining companies unilaterally quarterly pricing, the pricing scale is a few months after the Indian spot ore prices. For example, the price of the first quarter of next year, with reference to September this year to 11 months of the average Indian spot ore CIF price, this model is that steel mills overwhelmed.

Luo pointed out that last year China imported 628 million tons of iron ore, up 62.3% of foreign dependence, but things are improving. "External dependency is declining, about 60% this year, mainly the proportion of domestic ore mining increased." At present the proportion of equity is still significantly lower mine. It is reported that China's enterprises in foreign equity built and mining projects under construction, about 1.92 billion tons, accounting for 30% of total imports.

Yaozai Ping, general manager of Minmetals Development that the monopoly of the financial capital and the joint efforts of finance of the iron ore trade from getting closer. Joint metal data show that the current Indian spot ore purchase up to $ 156 / t, over the past few months has been high.