By staff reporter Zhang Yajun

(Caijing.com.cn) Chinese steelmakers will continue to resist pressure to sign new iron ore contract despite an agreement between Brazilian miner Vale and leading global steelmaker ArcelorMittal, China Iron & Steel Association (CISA) Secretary General Shan Shanghua told Caijing on June 19.

Shan said the bottom line on iron ore contracts had not changed after Vale, one of the world's top three iron ore exporters, announced a contract price agreement with ArcelorMittal, the world's largest steelmaker.

The price obtained by ArcelorMittal matches earlier agreements between Vale and steelmakers from Japan and South Korea. These agreements feature price cuts from year to March 2009 levels for iron ore fines, lumps and pellets of 28.2 percent, 44.5 percent and 48.3 percent respectively.

The move increases pressure on CISA to agree a deal with the approach of the June 30 deadline set for the conclusion of negotiations on most contracts.

China has so far declined to accept price cuts the leading global miners Rio Tinto, BHP Billiton and Vale, agreed with steel mills in Japan and South Korea.

Shan said CISA would continue to resist pressure to reach a deal despite the deadline, adding Chinese steelmakers would only agree new contracts if the price cut was satisfactory. The association has said previously it would only agree to price cuts of at least 40 percent on the year to March 2009 contract price.

1 yuan = 14 U.S. cents
Full article in Chinese: http://www.caijing.com.cn/2009-06-22/110187719.html