China says BHP-Rio iron ore JV monopolistic: reportSun Jun 7,...

China says BHP-Rio iron ore JV monopolistic: report
Sun Jun 7, 2009 9:49pm EDT

It also said China Iron and Steel Association (CISA) General Secretary Shan Shanghua denied media reports that Chinese steel makers would accept a drop of only 33 percent in iron ore term prices as agreed to with miners by Asian steelmakers Nippon Steel (5401.T), JFE Holdings Inc (5411.T) and POSCO (005490.KS).


NO 33-PERCENT SOLUTION

Shan was quoted as saying that China's demands in the 2009/10 iron ore negotiations were very clear, calling for an accurate reflection of changes in supply and demand conditions this year in the international iron ore market, where the global economic slump has softened demand.

"We absolutely will not accept a 33 percent price cut," he said.

"Iron ore term prices would be higher than last year under the 33 percent price cut agreed to by Nippon Steel and the Australians, as the Australian dollar depreciated 35 percent," he said.