iron ore trader

Rio wins 95% iron ore hike from small mills
Reuters

SINGAPORE -- Small Chinese steelmakers will accept a 95 per cent hike in annual iron ore prices by Rio Tinto, but Chinese heavyweights like Baosteel are expected to hold out for a more favourable prices, industry sources says.

"Smaller Chinese steelmills will accept Rio's 95 per cent price rise. They don't really have any choice," a source told Reuters at a steel conference in Singapore. "But Baosteel won't. They are under too much pressure from the government and will hold out."

A senior iron ore trader for a Chinese state-owned house said: "It is very likely that some small mills have accepted a 95 per cent price hike ... but I do not think big mills will accept a increase above 85 per cent."

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