China for long-term contract on iron-ore - Metals News - Metals Place
China for long-term contract on iron-ore - Metals News - Metals Place
China has expressed its keenness to enter into a long-term iron-ore supply contracts with Indian suppliers in a bid to offset soaring prices of the mineral caused by rising ocean freight and surging oil prices.
“Beijing will make efforts to establish a long-term iron-ore supply contracts with Indian suppliers in a bid to restrict soaring iron ore prices,” Metal Bulletin reported quoting China Iron and Steel Association (CISA) secretary general, Mr Luo Bingsheng.
The immediate factor pushing up the price of imported iron ore is the abnormal hike in ocean freight on spot iron ore trading caused by surging oil prices and US dollar depreciation, he said, and pointed out that Indian iron ore has led the way in this regard.
“We should introduce a long-term contracts for the importers (of Indian ore) as well as enhance the threshold for qualified importers,” Mr Bingsheng said.
The import price (including cost insurance and freight) of iron ore being shipped from India hit $135.19 per ton in October, up by $68.33 per ton, compared with $66.86 a ton seen in January this year.
“The price has since touched $200 per ton before slipping back to $180-185,” Metal Bulletin said.
The Chinese government is considering changing the way iron ore is imported in an effort to squeeze ore imports from India. – Press Trust of India
China has expressed its keenness to enter into a long-term iron-ore supply contracts with Indian suppliers in a bid to offset soaring prices of the mineral caused by rising ocean freight and surging oil prices.
“Beijing will make efforts to establish a long-term iron-ore supply contracts with Indian suppliers in a bid to restrict soaring iron ore prices,” Metal Bulletin reported quoting China Iron and Steel Association (CISA) secretary general, Mr Luo Bingsheng.
The immediate factor pushing up the price of imported iron ore is the abnormal hike in ocean freight on spot iron ore trading caused by surging oil prices and US dollar depreciation, he said, and pointed out that Indian iron ore has led the way in this regard.
“We should introduce a long-term contracts for the importers (of Indian ore) as well as enhance the threshold for qualified importers,” Mr Bingsheng said.
The import price (including cost insurance and freight) of iron ore being shipped from India hit $135.19 per ton in October, up by $68.33 per ton, compared with $66.86 a ton seen in January this year.
“The price has since touched $200 per ton before slipping back to $180-185,” Metal Bulletin said.
The Chinese government is considering changing the way iron ore is imported in an effort to squeeze ore imports from India. – Press Trust of India
posted by Sandip K. Dasverma at
11:52 AM
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