It is reported that imported iron ore stockpiles at China"s major ports increased by 1.29 million tonnes to 60.6 million tonnes by the end of last week this coupled with the recent deep steel price corrections would tip in favor of buyers in fiscal 2009 to 2010 ore talks.
Staffs at the port unveiled that Tianjin port, one of China"s major handling ports of ore imports, also eyes stockpiles increased to 5.01 million tonnes by last week end from 4.81 million tonnes in the week before and added some 0.6 million tonnes from last year end.
Mr Shan Shanghua vice-secretary general of China Iron & Steel Association said that "It"s still too early to determine it would tip in favor of buyers or suppliers right now, since two sides are in the midst of negotiations, and myth may come at anytime. He said that however, the steel price falls last week, which break the lowest point of last November is tipping in favor of buyers" market and thwarting the world Top Three ore miners" small trick of postponing ore talks in the hope that improved market conditions would give them more clout in the talks.”
Authority from the steel association said price for construction steel is still on the wane in domestic market. And steel price downtrend would drag into next month.
Mr Deng Qilin general manager of Wuhan Iron & Steel said the Top Three dreams a 5% term ore price rise for 2009 compared with a 40% to 50% price cut demanded by Chinese steelmakers. "2009 ore price is set to fall, and will fall to a reasonable and acceptable level for domestic mills."
It"s widely expected in China that iron ore price would fall by 30% to 50% while steel mills in European market insisting on price returns to 2005 levels, or a 50% drop. Japanese mills claimed the price should retreat to 2007/2008 levels at least on the reference of the 41% drop settled between MMK and ENRC in early February.