China on Monday signalled a softer stance in its iron ore negotiations with global miners, in a face-saving deal with Australian miner Fortescue Metal, which agreed to cut its iron ore prices by 35% from last year’s levels – less than the 45% cut that China was seeking from traditional ore suppliers. Those miners – Vale of Brazil, Rio Tinto and BHP Billiton – have already agreed to cut prices by 33% for steel mills in Japan, Taiwan and South Korea and have resisted Beijing’s calls for deeper cuts. China has been forced to modify its demands after spot ore prices last week hit $110 a tonne, double the April low of $58 a tonne.

This entry was posted by Gwen Robinson on Tuesday, August 18th, 2009 at 4:51 and is filed under Capital markets, Commodities. Tagged with china, Fortescue Metal. Edit this entry.