China's top iron and steel giant Baosteel will continue its role in 2008 to talk with major international iron ore suppliers on behalf of Chinese iron and ore producers, according to a decision made by the China Iron and Steel Association (CISA) Friday.
CISA deputy chief Luo Bingsheng said next year's price talks will continue to focus on the relations of iron ore supply and market demand.
He said that the international supply and demand of iron ore is seen to be basically balanced during the 2007-2008 fiscal year, and it is likely that supply will exceed demand.
In 2007 China's import of iron ore will be around 367 million tons, the predicted figure of 400 million tons by overseas institutions is obviously too high, Luo said.
He said that overseas suppliers have the advantage of manipulating output volume, the top three iron ore producers do have intentionally reduced their output recently to push up market price in preparation for next year's talks.
In June, China's import of iron ore dropped by six percent year-on-year, and the three major suppliers have noticed Chinese enterprises to cut supply by at least five million tons in the third quarter, he said.
Source: Xinhua
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