China & Its Shenanigans

China, the world’s biggest steel producer, is flexing its muscles again. The country is eager to replace the benchmark arrangement price long used by the industry for iron ore imports with one that will give it a bigger say.

Last week’s major meeting between the world’s iron ore suppliers and Chinese buyers, the first after this year’s troubled iron ore price talks, indicated getting an agreement next year could be even tougher.

China sought price cuts from miners of up to 40 per cent this year following two years of increases totalling more than 100 per cent. It boycotted this year’s agreement between major suppliers and Japanese and Korean steel mills on a 33 per cent cut, instead purchasing a large share of its iron ore on the spot market.

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