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China to stop iron ore imports from Vale
Last Updated(Beijing Time):2008-09-26 14:13

China will not import iron ore from Brazil-based Vale in the short term, a finance newspaper reported today.

Shan Shanghua, secretary general of the China Iron and Steel Association, said domestic ore will replace Brazilian products in a meeting on Tuesday that was attended by major Chinese iron and steel groups, according to China Security News.

The association considers the move reasonable due to weak demand for steel products at home and abroad, as well as price and quality advantages for domestic ore products.

This is the second meeting since Vale requested a price increase after annual contracts were signed. The request violated international rules on iron ore price negotiations, the report said.

The Brazilian miner has sought to raise prices for ore sold to Asian steel mills to bring it in line with agreements with European customers. Market watchers said Vale's move may have been taken to position itself for a new round of price talks for iron ore that will start in November.

Vale traditionally granted discounts to Asian customers to make up for higher shipping costs compared to products from Australia, the report said.

Representatives of Bao Steel, Wuhan Steel, Jinan Steel, Shougang Mining Company, Benxi Steel Mining Company, Shunfeng Steel Mining Company of Liaoyang and Miyun Metallurgy Mining Company from Beijing attended the association's meeting.

Source:Shanghai Daily 
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