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Commodities

China steel firms face margin squeeze

China's steel producers may pay higher prices for their iron ore supply after Asia's largest steel firm, Nippon Steel, agreed to pay 71.5% more for its supply this year, raising expectations that Chinese steel producers will face similar price hikes. China's largest steelmaker, Baoshan Iron & Steel, will soon begin talks with foreign iron ore suppliers on behalf of China's steel mills. Meanwhile, Kunming Iron & Steel (Kungang) has decided to delay its initial public offering, while Baosteel cited market conditions for the delay of its planned sale of A shares.

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