Rio Tinto suspends iron ore talks with China

• Source: Caijing.com.cn
• [14:24 September 07 2009]
• Comments

Anglo-Australian mining giant Rio Tinto said Sept. 4 it had suspended iron ore price negotiations with China and it is unclear when they will resume.

"Remember that we have our negotiators detained," Rio's head of iron ore Sam Walsh was quoted by the Australian, referring to the recent arrest of Rio's Chinese iron ore marketing team, which included Australian citizen Stern Hu.

Without a contract, Chinese mills can buy iron ore at prices down by 33 percent from a year earlier set in talks between Rio and Japanese steel mills, said Walsh.

Walsh said mining companies need to be cautious about the recent price changes, given that spot prices have eased to around US $ 80 per ton from more than US $ 100 per ton early in August, which Walsh argued mirrors recent declines in Chinese steel prices.