According to Shanghai Securities News stated that hindrances in the global steel ore dialogues prominent, concurrently with the market downward spiral, steel ore cost procedure has a more very complex situation. 21, one of the three greatest prospecting financial gathering Vale do Rio Doce distributed a assertion the financial gathering said in 2009 steel ore bond discount will be taken to the provisional implementation of such a flexible fashion, that is, 80% of the charge paid in currency and another 20% of the pay for charge will be in 2009 after the end of the year to pay the charge negotiations.

CVRD said the agreement will be applied in 2008 as a provisional cost of the standard charges, in 2009 after the end of the standard cost discussions will be founded on the outcomes of their adjustment. As is customary, CVRD and Asian iron alloy charges will be the standard cost discussions in the April 1 each year, but have not glimpsed any of the present negotiations. The past year in the new cost is not provide and demand edges are pre-released last year resolved a long ADPL charges, but the market worsening this year, mine was to make concessions.

CVRD Zhu, head of China said it would desert the long-HS charge first right to converse the price. “We are the motor, and now we plan to back the.” Zhu said, the financial gathering will advance this year to 25% lessening, while advancing sales efforts in China. He trusts that CVRD’s yield more competent in China, as more large-scale prospecting financial gatherings a cost superiority is looked frontwards to to cost about 100 million tons of steel ore deliver will be more competent manufacturers in lieu of.

It is comprehended that the first quarter of CVRD’s steel ore to Europe declined by virtually half, while steel ore trade overseas to China advanced by close to 40%, because of its hard metal mills and China noted some tiny and medium-long bond for the deliver of ore Association.

In item, it is in addition the CVRD prospecting financial gathering in Australia to chase the selling strategy. According to announced basis, the prevailing prospecting financial gathering in Australia to China Steel’s sales approach was “long-term accords on hard metal, 80% of developments to non-agreement is 60% of families, non-agreement is the windup of the customer, or a new accord to indication the accord hard metal mills, prospecting financial gatherings are at the matching time site market sales, a solitary recommended, virtually tender, greater than the minimal is to get a cargo. ”

Association in accordance with the 2008 prices of the year long, Australia 63.5% of the powder grade ore FOB prices for 91.6 U.S. dollars / ton, 76 U.S. dollars for Brazilian ore / ton. Tang Qi, general manager of Wuhan Iron and Steel Group, Lin said that the end of last year also if the Chinese steel mills in 2008 in accordance with the Association of the long procurement of iron ore prices will not survive.