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Chinese steel mills about to cave in.

Australasian Business Intelligence, March, 2006

Mar 26, 2006 (The Sydney Morning Herald - ABIX via COMTEX) -- Negotiations in China may soon set the global price of iron ore for 2006. In late March 2006, negotiators for large suppliers of iron

ore are in Shanghai, waiting to discuss the price with Baosteel. The latter group is negotiating on behalf of all Chinese steel firms. It wants to secure a cheap price from

producers such as BHP Billiton, Rio Tinto and Companhia Vale do Rio Doce, of Brazil. In 2005, Chinese steel producers were forced to agree to a 71.5 increase in the price of

iron ore. Analysts believe that they will have to agree to another rise, because there is such strong demand for iron...

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