Baosteel was embarrassed by the most popular overs

Baosteel was embarrassed by overseas steel companies' boycott of Rio Tinto's iron ore price

overseas steel companies' boycott of Rio Tinto's iron ore price embarrassed Baosteel

China Construction machinery information

Guide: Baosteel's bottom line is Rio Tinto's price. On June 23, Baosteel, which participated in international iron ore price negotiations on behalf of Chinese steel companies, announced that it had reached an agreement with Rio Tinto in Australia to agree that Rio Tinto's low-quality ore and high-quality ore increased by 79.88% respectively on the basis of 2007 prices 96.5%。 This increase was the highest in history

however, Baosteel's concession did not satisfy the appetite of BHP Billiton, another Australian mining giant, which has so far not accepted this increase. BHP Billiton CEO Gao Ruisi even said that he was not satisfied with this increase. This response was unexpected to the industry. After Rio Tinto's price was announced, the industry thought BHP Billiton would follow this price when sampling

"BHP Billiton does require a higher increase, but both sides of the negotiation have a bottom line. Our bottom line is the price increase reached with Rio Tinto." A person from Baosteel said

overseas steel companies boycotted Rio Tinto's price

however, this price has been collectively rejected by global steel companies. So far, the negotiations between steel companies in Japan, South Korea and Europe and Rio Tinto have not reached a result, and BHP Billiton has not reached a similar agreement with any steel companies. Nippon Steel clarified on June 25 that its negotiations with Rio Tinto were ongoing and no results had been reached

concessions did not earn understanding and support, which made Baosteel feel awkward. "BHP Billiton has too much appetite, but it is impossible to turn all of it into spot market sales." Xu Xiangchun, an analyst at Mysteel, a steel consulting firm, said

CISA has come forward to support Baosteel, saying that "the price agreement reached between Baosteel and Rio Tinto has maintained the current international iron ore price negotiation mechanism, which should be affirmed". CISA stressed that miners should not only focus on immediate interests and damage relations

previously, the contract deadlines of many steel enterprises and the three major miners were June 30 and September 30, but June 30 is generally regarded as a critical point, which means that from today on, many contracts do not know where to go and face the situation of invalidation