After months of stalemate, the Brazilian mining giant CVRD has iron and steel because of weak demand for all of a sudden decided to give up the iron and steel enterprises in Asia demanded a higher annual iron ore contract prices. Yesterday, CVRD Chief Executive Roger Agnelli in the United States held a briefing reporters confirmed that the company has given up today will increase iron ore contract.
After months of stalemate, the Brazilian mining giant CVRD has iron and steel because of weak demand for all of a sudden decided to give up the iron and steel enterprises in Asia demanded a higher annual iron ore contract prices. This week, together with India and Brazil, respectively CVRD reported a significant reduction of iron ore export tax and production information, so the demand side of the steel in the coming new year of iron ore in negotiations to occupy a favorable opportunity. However, as there are still uncertainties in the future, analysts believe that the new annual iron ore negotiations will be complex.
Recognize the demand to give up fare
In September this year, Vale do Rio Doce announced that the requirements of the Asian steel makers to accept its 12% price increase request, so that European steel prices and the prices in line. However, this request has been China's iron and steel producer collective boycott, the two sides deadlocked at one time.
Yesterday, CVRD Chief Executive Roger Agnelli in the United States held a briefing reporters confirmed that the company has given up today will increase iron ore contract.
According to foreign reports, the domestic iron and steel enterprises, chairman of Baosteel's Xu Lejiang in an interview Kaohsiung, Taiwan also pointed out that the global iron and steel enterprises are facing winter, the fare increase at this time that the CVRD is not the time, it withdrew the proposed fare increase.
Since June, the global economic slowdown to curb the demand for steel products, iron and steel enterprises have led to a reduction or even a loss, thus reducing the demand for iron ore. At present, the spot price of iron ore has been much lower than Brazil's iron ore price agreement, so that CVRD's price demands even more unreasonable.
As the pre-process the volume of imports, China's ports are still piled up over the ore body. According to the reporter access to the latest statistics, last week, the main port of the National Stock total 71,920,000 tons, an increase over the previous week and 360,000 tons, in a super-saturation.
In fact, last Friday, CVRD has announced that this year will be cut through the iron ore production to 9% of the "weakness", a few days ago, another big mining giant Rio Tinto Chief Executive Tom Albanese admits that China's economic growth to accelerate in the slowdown, and the Demand in 2009 will not bounce.
"Compared to the third quarter of the economic slowdown, China's fourth-quarter economic slowdown will be faster." Albanese Madagascar's ilmenite plant in an interview with reporters, "This will result in 2009, our products lag The cumulative growth in demand will accelerate.
2009 iron ore negotiations complex
In accordance with international practice, the annual global iron ore negotiations will start in November, China and Europe, Japan Steel prices will team up with three major global mining giant to start one-on-one talks, for the fiscal year 2009 to determine the long-term iron ore price agreement. Although the global economy is weak in the iron and steel enterprises have been cut, the situation seems to be more conducive to negotiations on a buyer's market.
This year China is still the negotiator Baosteel, Xu Lejiang at a meeting of space industry said that this year there have been changes in market conditions, iron ore prices next year will be adjusted. Baoshan Iron & Steel and Ying Chen in the Dongmi Baoshan Iron & Steel said on-line at that, in view of the iron ore market fundamentals have taken place in the larger changes in iron ore prices next year should return to a reasonable level.
Australia, local media, "Australian Financial Review reported that" yesterday forecast that from 2009 to 2010, the international market for iron ore and coking coal prices will decline 20% and 30% respectively. The newspaper said that this is on the conservative side, because in the past three months, the spot price of iron ore has declined 75 percent, while coking coal prices by 45%.
However, there are iron and steel industry, told reporters that the current iron ore spot price has been down on the demand side of the steel plant, have begun negotiations on a long-term price is reluctant to sign, "in the uncertain circumstances, there is no One can enter into a long-term price of a year, "
At the recent International Conference on Chinese raw materials, iron and steel industry association single Shang-hua of the Secretary-General also told reporters that in 2009 the iron ore negotiations in the end of the year on a quarter or a talk, but also to discuss with the mining enterprises. However, China Steel Association hope that the future long-term contract prices in line with the spot price.
In response, the United Network metals analyst Hu Kai then told reporters, in 2008 as a result of the annual long-term iron ore price negotiations, the three mining giants took a different long-term price agreements, together with the current spot market is not ideal, it is estimated that no A mining enterprises are willing to 2009 the annual long-term iron ore price negotiations with the first steel plant to reach agreement because the price may repeat the mistakes of the 2008 annual overturned while. If the stock market is expected to continue to fall, steel will also be long-term negotiations dragged on much longer, so as to obtain a more favorable weight, so the 2009 annual long-term iron ore price negotiations will be complex and difficult.
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