China Assoc "No Longer Saying" Won't Accept 35% Ore Price Cut
May 19 2009 - 7:07AM
Dow Jones News
A top Chinese steel industry official on Tuesday backed away
from earlier comments he made that a 30%-35% cut in this year's
iron ore term prices would be regarded as too shallow, suggesting a
change in the Chinese position.
"That was what I had said before, but now I no longer am saying
that," said Shan Shanghua, secretary-general of the China Iron and
Steel Association, referring to comments he made to a newspaper
last week that China wouldn't accept a 30%-35% cut.
In comments to the Southern Daily newspaper published last week,
Shan repeated a long-held Chinese position by depicting a cut of
such a magnitude as too small.
"Even if Korean and Japanese steel mills accept 30%-35% cuts,
the Chinese side will not go with the flow," he had said, according
to the report. "Even if the Korean and Japanese mills are willing
to accept smaller cuts, China is the world's largest consumer of
iron ore, and should get the largest cut."
Shan's comments come as expectations are rising among industry
watchers that a deal may be set soon between Chinese steel mills
and global miners BHP Billiton Ltd. (BHP), Rio Tinto PLC (RTP) and
Companhia Vale do Rio Doce (RIO).
-By Chuin-Wei Yap, Dow Jones Newswires; 8610 6588 5848;
chuin-wei.yap@dowjones.com