China Steel Corp Accepts 19% Iron Ore Price Increase

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By Rudi Filapek-Vandyck

Brazil’s Companhia Vale do Rio Doce (CVRD) continues to take the lead in this year’s annual iron ore price negotiations, signing up one customer after the other for a 19% price increase for the new year.

The latest CVRD customer to have agreed to the 19% price increase for iron ore fines is China Steel Corp. Don’t be fooled by the name though as China Steel Corp is Taiwan’s largest steel producer – not of the country we in the West refer to as "China".

According to the latest reports from the industry, Chinese steel mills seem to be pushing for a 12.5% price increase, after seeing their push for a maximum 10% increase going nowhere. CVRD officials are being quoted in the international press as rejecting the idea of a different price setting for the Chinese market.

China accounts for circa 43% of global iron ore consumption, but some experts forecast this to increase to as high as 60% this year.

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