Chinese Firms Boycott Vale's 20% Iron Ore Price Hike and Seek Alternative Sources
BEIJING--September 30, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--Chinese iron and steel firms are now boycotting Brazilian mining giant Companhia Vale do Rio Doce's (NYSE:RIO) (Vale) (Rio de Janeiro) move to raise the price of iron ore. At the beginning of September, Vale announced that it will raise the price of iron ore in long-term contracts by about 20% and threatened to cut supplies if the request is not honored. Several Chinese firms have signed supply contracts with domestic mining firms to replace the portion of iron ore imported from Vale, the China Iron and Steel Association (CISA) said on September 25.
UMC Price at posting:
$1.25 Sentiment: Hold Disclosure: Held
