Posted on 27 November 2007

 

Source: The Star, November 27, 2007
Steelmakers in China, the world's largest producer of the metal, will raise prices in the first quarter because of higher raw-material costs, Luo Bingsheng, the vice-chairman of the China Iron & Steel Association, said yesterday. 

"Low-cost production in China's steel industry has ended,'' Luo told reporters in Beijing. "Raw-material costs will keep steel prices at higher levels.'' From January to October, raw-material costs gained 12% for Chinese steelmakers, largely because of iron ore, Luo said. 

The contract price of iron ore, used to make steel, has risen for the past five years to a record as China boosted output of the metal. 

China will start preliminary iron-ore price talks with suppliers this week to set rates for 2008, Luo said, without giving details. 

The Asian nation, which is also the world's largest steel user, should set up strategic stockpiles of iron ore, Luo said.

 

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