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CBI Interview by CNBC
March 31 CBI News : Mr. Eric Yi Li, Vice President of CBI, accepted CNBC’s interview on the morning of March 31, talking of the recent market focus-iron ore price negotiation, price rises of steel and derivatives.
As of iron ore price rises and cost transfer, Mr. Li said: prices of derivatives are soaring, so the price rises of iron ore will not affect profit margins of large domestic iron and steel smelters. Baosteel purchases imported iron ore just higher by RMB 300/mt than before while its quarterly prices have increased by RMB 800/mt, indicating Baosteel has completely accepted the feedstock cost increases and will expand its margin room.
As of the pendent Australian iron ore negotiation, Mr. Li said if a 71% rise is accepted, it will be a precedent level in the history of iron ore negotiations. Once BHP Billiton Rio and Tinto are merged successfully, iron ore negotiation will be tough in future and also Chinese iron and steel industry will accelerate merging.
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