China's excessive imports of iron ore reached about 50mln tons, therefore, the price is no space for rising.
Luo Bingsheng, executive vice president from China Iron and Steel Association (CISA) said in the world steel conference that "China's excessive imports of iron ore reached about 50mln tons, therefore, the price is no space for rising". The data from Customs indicated that China's imported iron ore was 405mln tons around from January to August, up 31.99% year on year.
After the decrease in August, the spot price of China's iron ore began to rebound, rising from the U.S. $80 per ton to U.S. $90 per ton. Luo believed there are many factors to affect the increase of spot ore price, not excluding the artificial speculation.
As for the progress of iron ore negotiation, Luo said "the negotiation between China and the world's top three iron ore suppliers is still ongoing and the price talks of 2009 as well as 2010 will be carried out together". Meanwhile, he emphasized FMG is not the unique supplier and the iron ore price agreement concluded with FMG is separated from financial agreement.
Luo pointed out that the original "game rules" is no longer suitable in practice and must be adjusted and modified. As for how to modify, it would be changed by the supply and demand parties according to the principle of mutual benefit rather than decided by just one side.
Recently, CISA suddenly become active after the silence for nearly two months. Shan Shanghua, General Secretary commented on the iron ore negotiation for several times, claiming that the iron ore is still oversupplied and strive to settle the iron ore negotiation of 2010. He also said that the China's iron ore enterprises didn't suffer losses even without accepting Japanese price. The insiders of the industry believed that according to the information from CISA, it is clear that CISA will not compromise in the following iron ore negotiation.