The projected increase in procurement prices of iron ore for Chinese steel makers will be favorable for Ukrainian steel makers.
According Steelguru, Vale, Rio Tinto and BHP Billiton, the world's leading exporters of ore, reachred agreement with Japanese steel company Nippon Steel and Sumitomo Metal Industries regarding 90% increase in price for iron ore to $ 100-110 per ton at the II quarter of 2010, with subsequent quarterly review.
Chinese steel makers consume about 75% of total world iron ore traded. Syncom Capital investment company forecasts that if they are “convinced” in a similar price increase for iron ore, then China may become netto-impoter of steel in next months, especially considering substantial increase in prices for coke for China.
This created possibilities for Ukrainian steel producers to increase their market share in world steel market.
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