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Steel prices in the Steel Association recognize the unity and bargaining mechanism was abandoned mine

    February 24, in the China Iron and Steel Association (CISA) conference this year, the first information, Deputy Party Secretary Luo said that at present, three mines and has no reunification talks between the Chinese side, but the three mines and were approached in various steel mills in China trade, this means that the domestic steel giant Steel Association and the Chinese negotiators together to create a coordination mechanism has been completely abandoned.

    The so-called Chinese negotiation mechanism, which unified the nation's major steel mills in consultation, swing chain comprehensive, coordinated and Steel Association, China's Baosteel representatives directly involved in the negotiations as a negotiating mechanism. It is found in the past few years Chinese negotiating the best route to take to embrace China's huge demand for iron ore prices on the right to speak. Even in 2010, the Chinese have been working hard to carry on the negotiation mechanism.

    February 24, Luo, at present, three mines and steel mills in China were approached in various trades, a paper notice to tell the Chinese steel mills iron ore prices, the stock-out threat in front of the Chinese steel mills were forced to accept.iron chain As for the specific monthly or quarterly pricing pricing, Luo introduced earlier BHP Billiton in China since the implementation of the monthly pricing, but the other three iron ore giants are not the expression of two monthly price, but the three are often joint operations.

    Worth noting that neither the monthly pricing, quarterly pricing, or spot price of iron ore prices are approaching 200 U.S. dollars / ton, after BHP Billiton issued a notice to the steel mills, the latest monthly FOB price is $ 168 / t , plus shipping after Shanghai is fast approaching 200 U.S. dollars / ton.

    Luo believes that nearly 200 U.S. dollars / ton price is an astronomical figure, should be the highest price level. He predicted that the second half of the global iron ore supply and demand will change, iron ore prices will come down imposition of the Big Three will face a change in the pricing mechanism.

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