This is advanced haggling and the sums of money involved are immense. The talks on supply contracts for the supply year that began July 1 are deadlocked over how deeply to cut prices following two years of sharp increases.
China, the world’s biggest steelmaker, is pressing for price cuts of up to 40% following two years of increases totaling more than 100%. Seems fair. Major suppliers agreed to a 33% cut with Japanese and Korean steel mills this year.
China Daily reports that tensions over the talks rose when four Rio employees were detained July 5 and later charged with bribery and commercial espionage. This does not help negotiations.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved