FMG's Forrest says China must make the choice between benchmark or spot market

摘要

Chinese steelmakers are unlikely to achieve a better deal on iron ore prices than the 33 percent cut for fines accepted by Japanese producers, said Andrew Forrest, chief executive of Fortescue Metals Group (FMG), according to a report. The mills will have to agree that deal, which also included a 44 percent fall in lump prices, or shift entirely to the spot market, he said. "We've never heard of any steel mill in China who has said they wouldn't prefer a benchmark, as the spot price is dangerously volatile," he told Reuters at a finance conference in Australia.