Text Version
RSS Feeds
Home Forum Photos Features Newsletter Archive Employment
About US Help Site Map
SEARCH   About US FAQ Site Map Site News
  -Text Version
  -RSS Feeds
  -News Archive
  -Give us feedback
  -Voices of Readers
  -Online community
  -China Biz info
  What's new
MOFCOM positive about new iron ore pricing model
+ -
10:46, August 18, 2009

 Comment  Tell A Friend
 Print Format  Save Article
Ministry: cautiously upbeat on trade prospect in H2

China's FDI falls 35.7% in July

China to be cautious on using retaliatory trade measures

China wants MES for fair market

Multinationals play leading role in China's M&A

The iron ore price negotiation between China Iron and Steel Association (CISA) and Anglo-Australian Fortescue Metals Group Ltd. (FMG) proved a new pricing model of iron ore, and China appreciated the two sides' innovation, said Yao Jian, spokesman of the Ministry of Commerce (MOFCOM), on August 17.

The CISA reached an agreement with FMG for July-December imports of Fortescue's rocket fines (on an FOB basis) for 94 U.S. cents a drymetric tonne unit (dmtu). The agreed price represented a 35.02-percent price cut on 2008-2009 iron ore fines contracts and a 50.42-percent cut in the price of iron ore lumps.

Yao commented that the agreement reflected current iron ore demand-supply situation and the price was acceptable for both sides. The negotiation was the market behavior made by enterprises.

"Iron ore pricing should be beneficial to a fair international economic and trade order, should aim at a win-win situation between resource-exporting countries and resource consumers," he said.

As concentration ratio of China's steel industry is still low, possibility of market disorder still exists. Market disorder has also appeared in the development history of major western economies.

Yao believed that with the development of industry association and the enhancement of major enterprises' control over imports, iron ore trade order and the negotiation mechanism will be further improved.

By People's Daily Online

  Your Message:   Most Commented:
Being African among the curious Chinese
What does China contribute to the world?
25-year-old Norwegian singer, Michael Jackson's 4th son?
Three Beijingers jailed in US. Spies again?
What is beyond the physical Line?

|About Peopledaily.com.cn | Advertise on site | Contact us | Site map | Job offer|
Copyright by People's Daily Online, All Rights Reserved