China’s steel makers, the world’s largest consumers of iron ore, may ask for a substantive price cuts from their suppliers, Bloomberg reported. Japanese suppliers are currently asking companies including Rio Tinto and Cia Vale do Rio Doce for a 30% to 35% reduction in prices. Chinese steel makers may ask for as much as a 40% to 50% price cut. Luo Bingsheng, vice chairman of the China Iron & Steel Association, said that the association will not change its request. Should an agreement not be reached, Chinese steel makers can choose to buy more iron ore on the spot market, but Luo said that will be a decision made by the individual companies themselves. According to the Ministry of Industry and Information Technology, 40% of China’s 72 biggest steel makers suffered losses last month.
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