The China Iron & Steel Association said that Chinese steel makers are resisting efforts by Vale SA, Rio Tinto Group and BHP Billiton Ltd. to raise contract prices after steel dropped and the European debt crisis roiled markets.
CISA general secretary Shan Shanghua said, “The outlook for the European market is unclear and steel prices may keep falling.” And he also said that right now no Chinese steelmakers would accept the third-quarter prices asked.
“The steel market hasn’t returned to the levels before the global crisis” while iron ore prices are rising, Shan said by phone from Beijing. “That’s unsustainable.”
Steel prices in China have fallen 10% from an 18- month high on April 15, as the government imposed measures to curb speculation in the property market. Demand from makers of cars and appliances have also slowed, according to Baosteel.
“The three miners have sent over their third-quarter price demand, but they aren’t negotiating with the mills,” Shan said.
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