Shan Shanghua, secretary general for China Iron & Steel Association (CISA), disclosed yesterday that Chinese companies would not import Brazilian ores in the short term, as Brazilian miner Vale halted shipping products to China after voluntarily asking for higher prices.

Chinese steelmakers would use more homemade iron ore to reduce usage of Brazilian ores. Steelmakers like Shanghai Baosteel Group Corporation, Wuhan Iron & Steel (Group) Corporation and Jigang Group held talks with miners like Shougang Mining Co., Ltd., the mining subsidiary of Benxi Iron & Steel Group, the concentration plant of Liaoyang Shunfeng Iron and Steel Co., Ltd. and Miyun Metallurgy Mine Co., Ltd. on September 23 and inked iron ore supply contracts, said CISA yesterday.

China can satisfy half of its iron ore demand by domestic products, and many mines now have large inventories due to sluggish steelmaking sector, said Mr. Shan.

However, an executive from a larger steelmaker said that it was not practical to replace all the Brazilian iron ore, as home made products, which have comparatively lower tenors, were not qualified for being used in blast furnaces.

Find More Other News : Iron Ore, Mine Trade & Market, Mineral Exploration, Mining Finance, Mining Investment, Mining Jobs, Mining Top News