Iron Ore Price Hikes Threaten Disruption of China's Steel Market

Resource from: CBCC Likes:2884

Apr 23,2010

A senior Chinese industry official has warned major iron ore producers that huge price hikes are likely to damage China's steel market and relations between iron ore and steel producers. China's steel mills were under "great pressure" from soaring iron ore prices, which were expected to erode profits, said Zhu Hongren, chief engineer with the Ministry of Industry and Information Technology (MIIT) Thursday. Zhu said at a press conference that price hikes in iron ore would lift costs for Chinese steel makers and dampen their profitability, given their heavy reliance on iron ore imports. In the first two months of this year, profits of China' steel makers accounted for about 3 percent of their total revenue, compared with 2.9 percent in 2009 and 4 to 5 percent in 2008. China, the world's largest iron ore consumer, imported 155.03 million tonnes of iron ore in the first quarter, up 18 percent year on year. Vale, Rio Tinto and BHP Billiton, which account for almost 70 percent of the global iron ore trade, all announced they would shorten the long-term agreements for international iron ore prices. They also asked for price hikes of 80 percent to 90 percent under the new pricing scheme. Zhu said raising steel prices would only soak up some of the cost and the steel-consuming sectors would not stand continuous price increases.

()

【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.

Add to My Favorites

[Close the window]

Previous Wumu Town Introduced a Project of 70 million RMB
Next All Huixin Automobile Bearings were Up to the Mark

BRIEF INTRODUCTION

Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.

Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.

China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.