China: Chinese Steel mills receive Iron ore quotations from three mining giants

September 10,

One large steel mill in North China has recently received the quotations from the three mining giants, Vale, BHP Billiton, Rio Tinto. 

Rio Tinto’s CNF price stands at US$127/tonne with FOB (US$137/tonne), while Vale’s prices stand at US$135/tonne with FOB (US$161/tonne).

As reported, BHP Billiton continues flexible pricing mechanism that quotations vary from mills to mills. “BHP Billiton adopts monthly prices system with us and confirms the October price at US$122/tonne FOB” said one insider from a steel mill.

Currently, most of china’s steel mills are experiencing halts or production cutbacks for the policy of “Energy Saving, Emission Reduction”.

Insiders say the steel mill’s output may shrink by 10%, result in a certain decline for Iron ore demands, thereby leading to an anticipated price downtrend in the consequent markets.