Baosteel Front Of The Stage Behind The Scenes Negotiations Steel Association Standards – Baosteel,

Present news, iron ore negotiations start, China Steel Association retreated behind the scenes, Baosteel has been with Rio Tinto, BHP expansion talks.

Led by Baosteel to continue negotiations relative right choice, compared to China Steel Co, Baosteel has more experience in negotiation, but also in the negotiations according to their actual production in the rhythm control negotiations. “Last year, China Steel Association stalemate talks with others, this is not professional practice, steel mills need ore, then a high price or to keep the conversation going.”

It is noteworthy that China Steel Association in 2009 to lead negotiations on the right, which one of the factors that Baosteel and other steel enterprises irreconcilable differences between the interests.

So, once again dominated the negotiations, Baosteel, would not lead to renewed civil strife steel industry?

“Baosteel negotiated on behalf of Chinese steel companies, but the progress of the negotiations will be timely informed of other companies, then under the conditions of collective bargaining, representatives of the steel company Baosteel and then make a final decision.” The source said. This means that Baosteel has the right to participate in the negotiations, but the final outcome of negotiations is determined through consultation by the large number of steel companies.

China Steel Association Secretary-General Shan Shang Chinese iron ore negotiations in 2009, during the opening, said the reporter, not the same as in previous years, the point is that the Ministry of Commerce will the initiative in 2009 iron ore negotiations, delegated to the Steel Association, China Steel Association have the right to determine the final outcome of the negotiations.

But this year this arrangement has changed. Last year in November, the China Steel Association Vice Chairman Luo Bingsheng reply to this reporter, “whether China Steel Association will continue to dominate in 2010 iron ore negotiations,” the question that Baosteel has been a negotiator, and in 2010 continued to represent the China Iron and Steel trade negotiations, China Steel Society’s role is “behind the organization.”

August 14 last year, the Ministry of Industry and Minister Li Yi in words, but also implies that China Steel Association in 2010 lost the initiative in the negotiations, “China’s steel companies and three iron ore giants in the negotiations should be unity, may lead to re-negotiate Baosteel. ” China Steel Association will introduce more stringent standards for iron ore imports

In the Big Three continue to push up spot prices of iron ore under pressure from outside China began to speed up the layout from the negotiations. This year in February for the launch of “iron and steel industry, the Convention on imported iron ore trade order and self-discipline” (hereinafter “the Convention”) content will soon introduce a new supplementary section. It is learned that the additional iron ore import order will have a more rigorous evaluation and implementation of specific standards, which involved 70 import qualified enterprises and 42 steel traders.

This is no doubt we can see that the Chinese side in rectifying the order of the domestic market is continuously strengthened. In the internal control to prevent excessive imports and hoarding behavior ore mine down, but also will help improve our iron ore negotiations in an inferior position.

“The Convention” will add what?
Though did not disclose the specific time of release, “the Convention” and added that part of the Central Chamber of Commerce and other departments Minmetals Steel Union to discuss joint research finalized and will be followed for convening general meetings. Once the member companies voted through the program, first implemented in the member.

Above many supplements that a comprehensive enterprise intelligence to regulate imports. On the one hand, the review will focus on manufacturing enterprises and whether the project capacity to meet the national industrial policy, the flow of imported ore to eliminate backward production capacity, environmental and safety aspects at the same time also to set more stringent standards.

The other hand, has qualified for the trade enterprises, mainly in the capital, scale and service set threshold. The availability of capital size, dominant ore import sources and professional assessment of service become the focus of which the import size, the year before the regulations required to import 70 million tons of standard will be increased. In addition, imports of iron ore will be strictly enforced Proxy System, to prevent the production and trade enterprises store ore mine down and profits.

It is understood that the complementary part of the light and with the implementation of the national industrial policy, relevant government departments will follow the rules of the enterprises in which strict monitoring and review. Once the notification does not have any rectification, will order the company to stop production and to cancel the import of qualification. SABUNG AYAM