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Ore miner ends talks over price

[ 2009-08-28 11:50]     字號 [] [] []  
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One of the 'big three' iron ore producers has cut China's national ore negotiating body out of the equation, electing to deal directly with steel-makers that want to buy its products.

The move will heap more pressure on the China Iron and Steel Association (CISA), which had hoped to reach a deal in June.

Now, there is speculation that the overdue deal may not be reached at all this year.

The chief executive of Brazilian iron ore mining firm Vale, Roger Agnelli, said the company expected to keep offering provisional prices on ore shipments.

"The protracted talks seem endless this year," said Xu Xiangchun, a director at Mysteel consultancy.

CISA managed to get a 35 percent price reduction from Australia's third iron ore miner, Fortescue Metal Group (FMG), on Aug 17. It called for the same deal from the 'big three' - Vale, BHP and Rio Tinto.

None agreed.

"We don't see this pricing agreement as relevant to our pricing for fiscal 2009," Gervase Greene, a spokesman for Rio Tinto, said last week.

A senior executive of BHP China told Chinese media the company also would not agree to the same price as FMG.

The annual price talks between the three global iron ore miners and China's steel industry have been deadlocked for months after China refused to accept the 33 and 28 percent cuts offered by Australia miners and Brazilian miner Vale, respectively.

"If you have a contract (that) is being honored, you sell, you receive, what do you need to negotiate?" asked Agnelli. "Everything is fine ... We're not negotiating anything."

Questions:

1. What is the name of China’s national ore negotiating body?

2. Which top three iron ore exporter jut refused to negotiate with China’s national ore negotiating body?

3. Name the Australian miner that last week was able to make a deal with China’s national ore negotiating body?

Answers:

1. The China Iron and Steel Association (CISA).

2. Vale from Brazil.

3. Fortescue Metal Group (FMG).

(英語點(diǎn)津 Helen 編輯)

Ore miner ends talks over price

Ore miner ends talks over priceBrendan joined The China Daily in 2007 as a language polisher in the Language Tips Department, where he writes a regular column for Chinese English Language learners, reads audio news for listeners and anchors the weekly video news in addition to assisting with on location stories. Elsewhere he writes Op'Ed pieces with a China focus that feature in the Daily's Website opinion section.

He received his B.A. and Post Grad Dip from Curtin University in 1997 and his Masters in Community Development and Management from Charles Darwin University in 2003. He has taught in Japan, England, Australia and most recently China. His articles have featured in the Bangkok Post, The Taipei Times, The Asia News Network and in-flight magazines.

 
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