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Wed, Dec 12, 2018, 17:59:28 ---- The fact: 38.682.000 visitors done.

Chinese calm as '08 iron ore prices set 65% higher
Steel Business Briefing
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Company: Steel Business Briefing, United Kingdom
Attn: Steven Randall

The 65% increase in 2008 benchmark prices for iron ore fines settled between the Japanese mills and Brazil's Vale is being received among the major Chinese mills with surprising acceptance.

Though Nippon Steel remains tightlipped about the settlement, in a fax sent to Steel Business Briefing Monday morning JFE Steel says the new price for Itabira fines is 118.98cents/dry metric tonne unit, while Carajas fines are subject to a premium of 6.19/Fe%, tonne.

Chinese sources say that they had been expecting at least a 50% hike, so 65% is not "too bad". However there was some conjecture as to whether the Australian miners, BHP Billiton and Rio Tinto, would follow Vale and demand the same 65% increase for their ores.

An official from central China's Wuhan Iron & Steel tells SBB that as 65% is "not low, the Australians should not try to demand more. Neither Japan nor China would yield to any move to exact a freight premium for Australian shipments, he adds. Last October BHPB all but ruled out the idea of a freight premium in 2008 when it said instead it would seek to overhaul the benchmark system entirely during the next three years. Rio Tinto, however, has not dismissed such talk.

At northern China's Beitai Steel, an official was less optimisitic. "I think the Australian miners' appetites are bigger than Vale's," he says.

A China Iron & Steel Association official tells SBB that an official statement should be released within this month, strongly implying Baosteel's readiness to accept the 65% increase on behalf of all Chinese mills.


More information

For further information, please contact: Steven Randall +44 20 7645 9414 randall@thesteelindex.com

Steel Business Briefing (SBB) is an independent publisher, dedicated to providing quality news, information and prices to the global steel industry, and offering the most extensive international coverage of any steel publication. It delivers a range of newsletters and reports to your desktop, and also organises industry events around the world. The company was founded six years ago and has been one of the fastest growing publishing businesses in the UK. In a very short time it has become a market leader world-wide. More information on SBB and a free trial of its service are available at http://www.steelbb.com/.

SBB has been following the potential of steel reference prices and associated financial products for over four years since holding its Steel Futures Seminar in London in 2002.

Steven Randall has been involved with the steel industry for over 17 years, working as a management consultant in Europe and North America and as the Director of Corporate Strategy at Corus from 2001-2005. He started The Steel Index in November 2005.


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