Many Chinese mills have claimed they are unable to accept a 33 percent markdown in the iron ore price recently reached between Rio Tinto and Nippon Steel. A source said the decline of iron ore price is not enough to offset the decrease in selling price of steel products.

The CISA has not yet made comments on the new iron ore prices with their decreasing rates much lower than the expected level of 40 percent. The source said the Chinese side won’t give up its stance in the ongoing negotiations with international suppliers unless its goals are materialized. The new contract price would have little impacts on the spot market that is mainly driven by demand, added the source.