Dow Jones, citing a Shanghai based analyst with sources in Baoshan Iron & Steel or Baosteel, reported that Brazilian miner Companhia Vale Do Rio Doce has suggested it could accept a 10% reduction in this year's iron ore contract prices.
The analyst said that “Chinese steel industry and the world's top three iron ore miners including Vale, remain well apart on their views about the level and method of pricing for 2009.”
Mr Shan Shanghua, secretary-general of CISA told Dow Jones Newswires that the talks were likely to take time. He said that "I wish it were over tomorrow. I wish it would be over quickly. But I think it is going to take time."
Mr Shan declined comment on whether Vale had offered a 10% reduction, saying it was a matter for private negotiation.
Baosteel, along with the China Iron & Steel Association, is representing Chinese steel mills in annual contract price negotiations with leading miners The two sides concluded their latest round of talks over the weekend in Shanghai without making much progress. Negotiations are expected to resume after the Lunar New Year break next week.