China is facing more pressure on the annual contract talks for iron ore supply, which is stalled with producers, because of an argument over the price.
Ore for immediate delivery rose to a four-month high of $82.50 a ton in the week ending July 3, according to the Metal Bulletin which, an odd note, is where this writer started his career in journalism.
The China Iron and Steel Association rejected London-based Rio Tinto Group’s offer of a 33% cut in annual prices, accepted by Japanese and South Korean mills, and let a June 30 accord deadline lapse.
Caijing magazine reported last week that China’s mills, which have demanded a cut of as much as 45%, are now ready to discuss a reduction of between 33 and 40%. Tian Zhiping, vice-president of Hebei Iron and Steel Group said they are aiming for an agreement by the end of this month and want Rio to consider contracts that run for less than a year.
Tian Zhiping, vice-president of Hebei Iron and Steel Group, said they are aiming for an agreement by the end of this month and want Rio to consider contracts that run for less than a year.