Vale first confirmed spot sales may abandon the long association

Vale, which has been reluctant to acknowledge the spot sale of iron ore, first publicly confirmed the spot market on the weekend and revealed that it is currently focusing on sales of the spot iron ore market.　　Industry experts believe that in today's long term agreement negotiations "Reds" at the juncture, the statement may be to pressure on the hard-line buyer, but also revealed this year iron ore negotiations may not be able to reach a long association of information. Vale's "bizarre" shift in Saturday, Vale executive director Martins said, "For Vale, it is easy to rely on spot market sales to survive."　　"This is the first time that Vale, which has firmly defended the benchmark system of iron ore, has made a public affirmation of the spot market." "The spot market went off, long association mine basically no one to carry out, Vale began to sell to the Chinese market this year, but in order to make the" resolute maintenance of iron ore benchmark pricing system, "the posture, Vale has been the sale of the spot to conceal the deposit, the foreign never admitted.　　"A large trader with an iron ore import qualification in China has told reporters. "This year, the three major iron ore suppliers of the long association in the last year on the basis of 80 percent, 70 percent execution, in fact, and selling the same spot." "said Jialiang, chief analyst at my Steel network.　　And why is Vale in such a bizarre shift? Long association negotiations may not be reached "Vale at this time to sell spot ore, said the main focus on the spot mine, certainly with the current stalemate iron ore negotiations have a close relationship."　　At Umetal, a joint metal net iron ore analyst, said Vale's move was meant to put pressure on the buyer to negotiate iron ore. There is general consensus in the industry that China may not budge from Vale's pressure. In response to Vale's stance, CISA's deputy Secretary-General, Qi Xiangdong, told reporters in a telephone interview that the issue of iron ore negotiations was released by the Mr Shan Secretary-General and did not comment on the matter. "If both buyers and sellers are so interdependent and threatening, the negotiations on a long-term iron ore deal are unlikely to be reached this year," he said.　　"Jialiang said. Recently, iron ore suppliers and China to negotiate "Reds" upgrade.　　Australian miners informed reporters that because of the two sides of the negotiations, the attitude of confrontation, this year's negotiations will not end in the near future, and may not be achieved. Vale also shows the same point.　　Martins said he was not sure whether Vale would agree with Steelmakers on an annual iron ore supply this year, depending on the situation. Give up the long association or cause the supply and demand side lose for the iron ore suppliers, abandoning the long association does not mean that their iron ore cannot be sold. Australian miners said to reporters that the long association can not sign, may be transferred to do the spot mine to sell.　　At present, many small and medium-sized steel companies in China have privately signed a spot agreement with suppliers. "To give up the long association, the most important loss of iron ore suppliers is economic interests." Current iron ore spot prices are lower, spot prices have fallen by nearly 40% from last year's Chang. If the spot price, it means that the mining enterprises have to bear a lot of economic losses. "Joint Metal MeshAnalyst Zhang Ping said.　　And for Steel enterprises, Zhang Ping believes that once the long-term agreement can not sign the mine, coupled with China's iron ore pricing rights, there is no dominant, will also face the uncertainty of spot ore prices, resulting in the cost of steel prices can not control, easy to cause fluctuations in the steel market.　　Zhang Ping said that once the year does not sign a long association of mines, steel companies may be with iron ore suppliers to sign a one-to-one contract, the period may be a quarter or one months, while the small steel companies will likely be directly to the spot market to buy. News link Rizhao International iron ore trading center was listed yesterday, Shandong Rizhao International iron ore Trading center officially listed. The centre aims to provide a more unified external trading platform for iron ore.　　Industry insiders believe that the country's largest iron ore throughput in Rizhao port to establish a trading center, in order to standardize iron ore trading made an attempt. It is understood that Rizhao international iron ore trading center registered capital of 20 million yuan, a total of 5 private enterprise shareholder units. Beijing Steel Union T-Mac information director Xu Xiangchun told reporters that through the establishment of iron ore trading center, iron ore trading can be more standardized and transparent, improve the efficiency of iron ore imports. Every journalist Wei