Chinese steel industry leaders said they expect raw material prices to remain stable through next year, Beijing Morning Post reported (in Chinese). Shougang Group chairman Zhu Jimin suggested that a common understanding had been reached by domestic steel makers that the expected price in next year should remain at the same level as this year. The demand and supply will keep balance in 2008 while new iron ore mines begin operations, said Zhu. His remarks came following estimates by foreign investment institutions that the price of iron ore will rise 5-15% in 2008. China's steel manufacturers will face challenges as iron ore
transportation prices increase, major iron ore supplers reduced output
and Indian spot market price rise. China's Baosteel will lead price negotiations for 2008, which will be held in October with major global supplers such as BHP Billiton, Rio Tinto and CVRD.