China iron ore importers must consolidate - association
(XFN-ASIA)
Updated:
2008-05-19 15:16
Counter:
China iron ore importers must consolidate to stand a better chance of resisting the price demands of foreign miners, according to Gen Bingxi, vice-general secretary of the China Chamber of Commerce for the Metallurgy Industry.
"We need to push for the consolidation of the numerous private traders and importers," he said.
Speaking at an industry conference, Gen said that "scattered operators and investors" must build a "united front" against foreign suppliers.
He reiterated calls by other industry officials to avoid inefficient spot purchases in relatively small quantities.
Chinese steel industry officials have threatened to boycott iron ore spot sales by Rio Tinto Ltd, which it accused of diverting iron ore to more lucrative spot transactions while failing to fully deliver on contracted shipments.
Rio Tinto has cited a provision in its sale agreements that allows it to sell some of its contracted ore on the spot market.
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