Beijing Business reported that Baosteel was lately criticized doing things harmful to the interest to the nation by hiking steel prices for next month at the juncture of iron ore negotiation.

 

Mr Qi Xiangdong deputy secretary general of CISA has stepped in and said it’s not right to pin labels on the steelmaker.

 

As a state holding enterprise Baosteel should not have put its interest against the nation’s. According to Mr Qi, the market price is determined by supply and demand. Regardless how special moment, it should seek an appropriate rise if the fundamentals support. The iron ore negotiation, often lasting more than half a year, should not act as prohibition order to steelmakers price change.

 

Baosteel led the price hike for next January last week, followed by Wuhan Steel, Angang and some others. In the meantime, 63.5% grade Indian spot ore climbed up to USD 115 per tonne peaking the year of 2009.

 

Mr Qi said that iron ore price reflects there is demand and also, shows speculation. The lofty price can be momentary if the demand wanes.

 

Sourced from Beijing Business