China is ready to relent on iron ore price reduction

Published: 01 Jul 2009 00:37:38 PST

July 1 MetalBiz-China is expected to relent in its attempt to squeeze a 40-45% price cut from global iron ore producers as negotiations stretch beyond the June 30 deadline, the influential Caijing magazine reported.

Citing officials attending a closed meeting of the China Iron and Steel Association (CISA) on June 30, the magazine said China was still expecting a better deal than the 33% reduction agreed by Rio Tinto with Japanese steel mills.

The report said no substantive discussions between CISA and the three global miners, Rio Tinto and BHP Billiton of Australia and Brazil's Vale, had taken place over the last two weeks.