Chinese steelmakers, the world's biggest, aim to conclude annual contract iron ore talks by the end of this month and may consider trimming their price cut demands, a company executive said.
"Some of the annual contracts, which ended June 30, still have a one-month grace period,'' Tian Zhiping, vice president of Hebei Iron & Steel Group, said today in a phone interview. "The two sides should go on with the formal talks and settle the prices as soon as possible.''
China, the world's biggest buyer of iron ore, has rejected a 33 per cent price cut accord struck by Rio Tinto Group and Japanese steelmakers. Chinese steelmakers may accept less than a 40 per cent price cut, Caijing magazine reported yesterday.
"Whether we would agree to a cut less than 40 per cent is dependent on Rio's stance,'' Tian said. "It hasn't offered a cut bigger than 33 per cent. There also needs to be discussion on whether prices would be set on a half-year basis or on a quarter basis.''
Bloomberg
