Caixin
Oct 24, 2013 07:30 PM

Why Expanded Iron Ore Production Doesn't Mean Lower Prices

 
A

(Beijing) -- International banks are increasingly getting involved in the iron ore trade.

The purchasing manager at a Hebei-based steel mill said Fortescue Metals Group (FMG), Australia's third-largest iron ore exporter, is now selling iron ore to banks.

"The specific model is that banks give financing to FMG, which in turn gives banks long-term agreements for a certain volume at below-market prices," the purchasing manager said. "The volumes given to banks aren't that big. Banks have a lot of steel customers and trader customers. They're able to sell several million tons."

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code