Buyers to gain more bargaining power

Buyers to gain more bargaining power 发布时间:08-11-05    阅读次数:   

Representatives of mills from China, Japan and Europe will kick off annual iron ore price talk for 2009 in November with the world’s three largest suppliers. Buyers seem to have gained more bargaining power with mills cutting output amid a weak global economy. As of last week, Chinese iron ore stocks at ports have amounted to 71.92 million tons, up 360,000 tons from the previous week. The CISA vice president Luo Bingsheng pointed out that iron ore inventory in some mills has reached four months. However, Brazil’s Vale has not changed its $14.2 billion expansion plan next year, claiming China’s demand would rebound in the middle of 2009. Rio Tinto also said the weak demand from China is just a temporary phenomenon as the country will maintain an annual growth rate of 8 to 9 percent. UBS has revised its earlier forecast of a 15 percent drop in 2009 iron ore contract price to 40 percent.