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Iron ore price negotiations - Chinese mills seek government help

It is reported that Chinese and Brazilian governments appear to be getting involved in contentious midyear iron ore price negotiations between Chinese steel mills and Brazilian miner Companhia Vale Do Rio Doce or Vale.
Mr Zhang Jingang Deputy Secretary General of CISA said that China's Ministry of Commerce held a meeting last week between China Iron and Steel Association and the Minister Counselor at Brazil's embassy in Beijing. He said that "Arranged by the Ministry of Commerce, we had a meeting with the Minister Counselor to reiterate our objection to Vale's request."
Mr Zhang said "The Brazilian Minister Counselor mentioned a Vale vice president will probably visit China soon, but we did not get any notice from the company for discussions."
Vale's request for the unusual midyear price adjustment comes at a difficult time for the steel industry which has been hit hard by slowing demand and a sharp fall in product prices.

(Internet)

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