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Kallanish Kallanish

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June, 23rd 2021

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JUN 10
06:22

CISA, Nippon Steel officials discuss iron ore prices

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The China Iron and Steel Association (CISA) says its vice president, Luo Tiejun, met on 8 June with representatives of Nippon Steel in China.

Kallanish notes that the main topics were high iron ore prices, controlling production capacity, standardising the iron ore pricing mechanism, and steel market trends in the second half of this year.

As early as 19 December last year, CISA stated that the development of China’s steel industry in the next five years depends on controlling high iron ore prices. It then participated in the government’s recent actions to suppress high commodity prices. The State Administration for Market regulation has decided to report on market conditions and implement corresponding measures on a weekly basis (see Kallanish passim).

Nippon Steel meanwhile lifted offer prices in June and July in response to high raw materials prices including iron ore. Pressure has been building on the company as buyers are resisting successive price increases.

The recent fall in iron ore prices was welcomed by both sides in the meeting, as their countries are both highly dependent on iron ore imports. China imported 472 million tonnes of iron ore in the first five months of 2021, up 6% on-year, while Japan imported 36.7mt in January-April.

In addition, the Nippon Steel representatives said the company hoped both sides could continue to maintain cooperation and exchanges in future, especially in low-carbon technologies.

By Kallanish Team