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Rio Tinto Out Of The Spot Market, Steel Prices Or Pay For The New Pricing by ayay wang
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Rio Tinto Out Of The Spot Market, Steel Prices Or Pay For The New Pricing by AYAY WANG
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| Article Posted: 10/28/2010 |
| Article Views: 112 |
| Articles Written: 2282 - MORE ARTICLES FROM THIS AUTHOR |
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Rio Tinto Out Of The Spot Market, Steel Prices Or Pay For The New Pricing |
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Business,Business News,Business Opportunities
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In early September of a mining forum during the tea break, a small Australian mining companies complain that, despite the Australian mine is still popular, but buyers in China's attitude towards the subtle changes that have occurred. "Whether it is before or now, they see the whole mine Steel Industry chain, the most profitable, and now some people will think, O mine the existence of secret trading profits. "
Last week, the world's second largest iron ore producer Rio Tinto (RioTinto) head of iron ore, Sam? Walsh (SamWalsh), said Rio Tinto and Chinese steel mills for iron ore price negotiations between been terminated. Sam? Walsh also expressed "hope to return to the negotiating table as soon as possible," the desire.
O Mine also gradually withdrew from the spot market, this is Rio Tinto trading risks in order to avoid making choices. Rio Tinto CEO Aibo years (TomAlbanese) said, "Actually many Chinese steel mills have agreed to in May with the Japanese steel mills cut prices reached 33% agreement, even though China has not formally accepted the base price. The company's most iron ore is by way of long-term contracts sold to China, the temporary price and benchmark price set by the same line in Japan and continue to do so until a shift in the negotiations. "
"Start from August, traders can not buy in the spot market fundamentals Australian mining, we wondered, in previous years, even if the Australian mining contracts to ensure supply, but also how many will put some goods in the spot market." Shanghai, a position traders said.
In this year's iron ore negotiations, the Australian mining played a "absolute star", the Brazilian miner CVRD is wise to choose the spectators. However, basic to several rounds of talks broke up an end, both sides finally lost patience.
But this did not affect Australian mining in China Sell . Nanjing Iron and Steel Group had a high level, "a substantial reduction in Australian ore imports," the report said suspected: "reduced? How would reduce? We are still in production plans by imports."
Now, with the obvious effect to the stock, positive factors such as downstream demand has picked up show, China has launched a new round of iron and steel complex production. Rio Tinto was once the case because of injuries to Australian mines has not lost the wide embrace of the Chinese market.
But a series of moves Rio Tinto, are suggesting that Australian ore mine in Brazil as well as long-agreement price mechanism will be replaced by the new method, while the new method will be rendered more flexible pricing. The short term, the Chinese steel mills seemed to have some success, but in the long run, hurt is still the largest Chinese steel industry. Because of the volatility of future market is not beyond the control of Chinese steel mills, not yet mature for the Chinese steel industry, a stable pricing mechanism seems to be a better choice.
In fact, mainstream domestic steel mills are still reluctant to give up the long piece of meat and potatoes of the contract agreement, Zhang, general manager of Anshan Iron and Steel Group, the Agreement on the public support price mechanism for long. Zhang's approach is not difficult to understand
. Over the years, steel has a long association contracts, the import ore prices, the spot market than the lower 10 U.S. dollars / ton, or even more. In addition, the market view that iron ore prices will continue to rally the next few years. UBS issued a report on September 1, said China's steel production capacity will supply iron ore market next year, the situation appears to predict long-term agreement in 2010 the world supply of iron ore price rise of 20% may occur.
Injured Australian mine temporarily out of the spot market, in line with the Steel Association, "uniform price" the guiding ideology. But the real injuries, may be China's major steel companies, they pay for the new pricing. I am a professional writer from China Crafts Suppliers, which contains a great deal of information about silk baby blankets , wholesale fleece throws, welcome to visit!
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