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Iron ore: when China does not call the tune

Overview

China's steel manufacturers will go into negotiations to set the price for iron ore imports in 2008 with a weak hand because of the continuing expansion of their industry and limited global supply of ore. Beijing's difficulties in implementing a slowdown in Chinese output are shown by the 80 per cent year-on-year jump in steel exports in the first seven months of 2007.

Domestic ore production will not fill the gap. Though production volume is rising significantly with the...

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