China's MIIT supports CISA and CCCMC in negotiations with overseas corporations

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Jan 2010

Zhu Hongren, spokesman for China's Ministry for Industry and Information Technology (MIIT) has made a statement against the background of the iron ore contract price talks for 2010. The statement is as follows:
In recent years, with the rapid development of the Chinese iron and steel industry, the import volume of iron ore has increased on a large scale. China imported 630 million metric tons of iron ore in 2009, up 41.6 percent on 2008, and the degree of dependence on external iron ore supplies has increased from 44 percent in 2002 to 69 percent in 2009. China is both the largest iron and steel manufacturer and iron ore-importing economy in the world. By January 8, 2010, the price of Indian iron ore of 63 percent iron content, had increased to $134/mt (including freight). As iron ore is the main raw material for the steel industry and is closely linked to the stability of the Chinese iron and steel industry and the national economy, the Chinese Government pays close attention to the iron ore situation. The negotiations for iron ore entail corporate self-discipline, and the price is determined by the market. At present, Baoshan Iron and Steel Company is the Chinese iron and steel corporation carrying out negotiations with the overseas countries.
The international iron ore market has recently been monopolized by the ‘big three'. We hope the main suppliers try to reach an equitable price agreement acceptable to both sides based on the long-term and fundamental interests of this industry and long-term cooperation with China.
Support of the China Iron and Steel Association (CISA) and the China Chamber of Commerce for Importers and Exporters of Metals, Minerals and Chemicals (CCCMC) in negotiating with overseas corporations, the implementation of a registration and recording system for iron ore imports, and the review of the flow of iron ore in the import market can help to reduce conditions of disorder in the market. Meanwhile, China found new iron ore resources of nearly 5 billion metric tons in 2009, and this will largely help to relieve the supply-demand situation.

Source: Steel Orbis