The Commerce Department is responsible for the relevant people on the 2008 annual iron ore price answering a reporter's question

A few days ago, the head of the Ministry of Commerce related to the 2008 annual long-term iron ore price agreement accepted an interview with reporters.

Related to the Ministry of Commerce said, it was noted that on February 22 with the Brazilian Iron and Steel company on the 2008 annual benchmark of the international iron ore price agreement. The official pointed out that in recent years, the long-term iron ore price agreement for the rise of China's iron and steel industry and related industries have a significant impact on. In particular the 2008 annual iron ore prices rose sharply, and coal, transport, and so the impact of price increases, China's steel production costs will further aggravate the pressure.

The official said the state department has issued a series of macro-control policies, optimize the industrial structure of steel, out of step backward production capacity, the steel curb the excessive growth of production capacity. At the same time, t
hrough tax policies, such as iron and steel restrained the growth of exports, since June 2007 since the Chinese steel exports down month by month. According to customs statistics, in January 2008 China exported 4,140,000 tons of steel, dropped by 5.4 percent year-on-year, and further down trend. As a result, iron ore supply and demand will balance.

The official stressed that the long-standing trade patterns on the long-term iron ore supply and demand sides of the long-term and stable cooperation is of great significance, we agree with the supply and demand for the two sides to make efforts to maintain the mechanism. Iron ore supply and demand sides are interdependent relationship between the two sides need to maintain the market stability and a fair and reasonable trade order and achieve win-win cooperation.

(Information Source: Information Office of the Ministry of Commerce)