China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
Industry sources confirmed today that BHP Billiton Limited and Rio Tinto are holding talks with Chinese steelmakers over iron ore lump premiums for 4Q 2012.
A source said, “BHP Billiton is currently still negotiating its 4Q lump premium, but the discussions are in the range of USD 0.06-USD 0.07 per dry metric ton unit (dmtu).”
However, a separate source from a steel mill in northern China indicated that a lump premium of USD 0.08 per dmtu had been negotiated with BHP Billiton Limited. The source added that the mill was also still negotiating the 4Q premium with Rio Tinto.
A different source from another steel mill in eastern China said that lump premium levels were still being negotiated with BHP Billiton Limited and Rio Tinto. The mill reportedly fixes its lump premiums on a monthly basis with BHP Billiton Limited.
Source (English): Platts
