China said to cut iron price

THE CHINESE Iron & Steel Association has reportedly signed a deal with iron ore suppliers calling for a one-third price cut.

The same 33% reduction was earlier agreed by Japanese and South Korean steelmakers. The deal, reported by China Business News, is for just April-October, rather than for a full 12 months.

The CISA had leaked early news pointing to the deal last week, after it had taken over from Baosteel as China’s lead negotiator.

And a report from Reuters last week also appears to be coming true: the figure is $0.97 per tonne for Pilbara Blend Fines and $1.12 for lumps.

The talks swung in favour of the suppliers when spot iron ore prices drifted higher than contract prices. It was these prices which would have prevailed after three months of stalemate – which ended on 1 July. THE CHINESE Iron & Steel Association has reportedly signed a deal with iron ore suppliers calling for a one-third price cut.

Source: Fairplay