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Iron ore suppliers asked to cut prices

(China Daily)
Updated: 2008-12-10 07:25

China could ask Rio Tinto Group and other iron ore suppliers to cut their prices by up to 82 percent to the 1994 levels, a China Iron and Steel Association (CISA) official said Tuesday.

"Iron ore prices should be consistent with steel prices that have fallen to 1994 levels. We will require Rio Tinto and other suppliers to cut prices sharply," said Shan Shanghua, general secretary of CISA, a major buyer of iron ore from the international market. The official said Chinese steel manufacturers suffered losses in October because of a fall in demand from carmakers and builders.

Earlier Australia and New Zealand Banking Group said China could ask Cia Vale do Rio Doce, Rio Tinto and BHP Billiton and other iron ore suppliers to cut prices by 50 percent.