China accepts iron ore price hike, but slams "out of rule" talks
(Xinhua)
Updated: 2006-06-23 10:19 The 19 percent price increase follows a 71.5 percent hike in iron ore prices
in 2005. China's booming economy, which grew about 10 percent in each of the
past three years, has to be fueled by large amounts of raw materials, such as
iron ore, analysts acknowledge.
The association and chamber statement
said the cost, insurance and freight (CIF) for Australian and Brazilian iron
ores had a striking gap. "As the next step, both supply and demand sides should
study a rational solution."
In a move to "streamline the order of iron
ore imports," the statement called on iron ore enterprises to speed up
consolidation and turn spot transactions into long-term contracts in line with
the international practice.
World importers and exporters should set up
long-term, stable ties in the pursuit of joint development and a win-win result,
it acknowledged.
"Any acts which violate the principle are not the right
choice, and the association and the chamber will go on striving for safeguarding
the principle."
China has announced plans to cut back on production by
substandard steelmakers, aiming to eliminate an annual 100 million tons of iron
ore capacity and 55 million tons of steel capacity over the next five years.
But government figures show that iron ore imports have been steadily
rising to roughly 276 million tons in 2005 from 208 million tons in 2004 and 140
million tons in 2003.
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