Steel companies to forge united front on prices

China Steel & Iron Association has called a conference of the largest domestic steelmakers to work out a common stand in bargaining with major iron ore producers in the 2009 round of price negotiations starting next month.

This round of negotiations is expected to be different from previous ones that were largely dominated by the ore suppliers. This time, the market situation has changed as fallout from the global credit crisis has greatly depressed demand.

The much enhanced bargaining power of Chinese steelmakers in this buyers' market was clearly demonstrated by their boycott of Vale, the Brazilian mining giant which unilaterally raised ore prices on Sept 3.