Chinese steelmakers keen to secure supplies outside the big 3 – #Vale, Rio Tinto and BHP
According to China Iron and Steel Association, more than 20 iron furnaces and 20 rolling plants in China’s Hebei region have shut down their operations due to plunging steel prices and rising raw material costs.
This has prompted Chinese steelmakers’ starting new talks with the big 3 – Vale, Rio Tinto and BHP to review the pricing mechanism to make sure prices match spot market prices.
Beyond that, Chinese steelmakers are also actively looking for other ways to reduce this pricing and cost issue – by going direct to prospective small and mid cap iron ore miners and investing in them.
This, of course, is nothing new. But as we see more price volatility ahead, this has become a more pressing issue for the Chinese steelmakers.
#Shougang and Hebei Iron and Steel, 2 of China’s top 5 steelmakers will be convening in Singapore for the Asia Mining Congress to speak about their investment strategy and look out for potential mines to invest in.
To find out more on what the conference is about, download brochure here