China industry body complains of 'irregularities' during iron ore talks
The China Iron and Steel Association (CISA) has hit out at 'irregularities' in the recently completed iron ore talks that saw Chinese steelmakers grudgingly accept a 19 pct price
BEIJING (XFN-ASIA) - The China Iron and Steel Association (CISA) has hit out at 'irregularities' in the recently completed iron ore talks that saw Chinese steelmakers grudgingly accept a 19 pct price hike for contract iron ore deliveries this year.
The industry body said in a statement on its website that any action that 'betrayed the principle' of steel makers and iron ore producers working together in a long-term and stable relationship is unacceptable.
'We regret some irregularities that occurred during the 2006 iron ore talks, and strongly hope the two sides can find a solution,' it said, without elaborating.
In April, several officials from Brazil's Companhia Vale Do Rio Doc (CVRD) leaked details of the ongoing negotiations over iron ore prices, aiming to push China to accept the 24 pct price hike.
China had been determined to secure a much lower price but, after talks dragged on past an April 1 deadline, steel producers in other countries signed contracts agreeing to pay 19 percent more than last year for the product.
China finally conceded defeat and accepted the same pricing terms on Tuesday.
However, the CISA statement said that the CIF (cost, insurance and freight) prices from Australia and Brazil would need further negotiation, noting they built in 'a significant margin'.
It also called for long-term and stable cooperation with international iron ore suppliers.
The industry body said in a statement on its website that any action that 'betrayed the principle' of steel makers and iron ore producers working together in a long-term and stable relationship is unacceptable.
'We regret some irregularities that occurred during the 2006 iron ore talks, and strongly hope the two sides can find a solution,' it said, without elaborating.
In April, several officials from Brazil's Companhia Vale Do Rio Doc (CVRD) leaked details of the ongoing negotiations over iron ore prices, aiming to push China to accept the 24 pct price hike.
China had been determined to secure a much lower price but, after talks dragged on past an April 1 deadline, steel producers in other countries signed contracts agreeing to pay 19 percent more than last year for the product.
China finally conceded defeat and accepted the same pricing terms on Tuesday.
However, the CISA statement said that the CIF (cost, insurance and freight) prices from Australia and Brazil would need further negotiation, noting they built in 'a significant margin'.
It also called for long-term and stable cooperation with international iron ore suppliers.
