Minmetals Chamber of Commerce Experts: Walking on Two Legs to Struggle for Iron Ore Negotiation

Xu Xu, president of the China Minmetals Chemicals Import & Export Chamber of Commerce, pointed out that in the face of the fact that iron and steel production has declined and iron ore prices have been affected by the decline in market supply and demand in 2009, China should walk on two legs to strive for iron ore price negotiation advantages.

Xu Xu made the above speech at the 2009 Iron Ore International Market Seminar held in Tanggu, Tianjin on the 13th. This meeting ended today.

Xu Xu said that the so-called "two legs" is a leg based on the country's efforts to increase overseas investment in mining, to ensure the sustainable supply of iron ore resources in China, the implementation of "going out" strategy. At present, the iron ore market is a buyer's market, and the market value of mining companies in Australia, Brazil and other countries has reached historical lows, and there is a strong demand for foreign investment. This is an opportune time for China to develop overseas resources. The other leg refers to the domestic enterprises' sincere cooperation, the formation of a voice within the industry and foreign negotiations, the iron ore importing countries to play a dominant position in the buyer's market conditions, to achieve mutual benefit and win-win for all enterprises.

It is understood that the 2009 iron ore price negotiations that began at the end of last year are still in progress, and the negotiating parties are still stagnating in terms of price cuts. Last week, Rio Tinto put forward a proposal to temporarily reduce the price by 20% before the negotiations were settled, and the Chinese side requested that the price of iron ore be reduced by at least 40%.

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