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China steelmakers want ore at '07 price level

(Agencies)
Updated: 2009-03-19 14:31

China's steel industry is seeking a reduction in iron ore prices to levels seen two years ago, a top executive of the country's steel industry association said on Thursday, as demand eases in the global recession.

Iron ore miners such as Brazil's Vale, BHP Billiton Ltd and Rio Tinto Ltd/Plc are currently negotiating with Chinese steel producers over annual iron ore contract terms.

Shan Shanghua, secretary general of the China Iron and Steel Association, also told reporters on the sidelines of an industry conference that Baosteel Group, China's largest steelmaker and parent of listed Baoshan Iron and Steel, was negotiating iron ore supplies for the entire China steel industry, which should bolster its bargaining power.