NEW DELHI, February 7: MMTC has secured a 2.94 per cent increase for iron ore lumps and 2.82 per cent hike for iron ore fines to be exported to Japan during the next fiscal (I998-99).A contract for supply of a total quantity of 7.2 million tonnes was concluded between a high-powered Indian delegation with representatives of Japanese steel-makers in Tokyo on February 4. The deal will bring in foreign exchange worth Rs. 650 crore.
An MMTC release said the price increase obtained by MMTC is on the lines received by its competitors - Australia and Brazil.
The delegation comprised acting-CMD MMTC BL Madhukar, director (marketing) SD Kapoor, CMD Kudremukh Iron Ore Company S Murari, besides additional secretary and financial adviser in the commerce ministry DP Bachi and joint-secretary in the steel ministry Naresh Narad.
The release says preliminary discussions in ore price negotiations for fiscal 1998-98 started in the Japanese market during November 14-18, 1997, between major Australian suppliers, namely,BHP, Hamersley & Robe River with the Japanese steel mills.
In Europe, the first round of negotiations commenced on December 11, 1997, between CVRD of Brazil and German steel mills. In the first round of negotiations, iron ore suppliers pressed for a price increase, whereas steel producers explained their inability to concede to it due to the adverse economic environment facing them.
The second round of price talks began during the week, commencing January 12, 1998, both in Japan and Europe. The price agreement was first reached in the Japanese market on January 12 between BHP of Australia and Japanese steel mills. This was followed by settlements between Japanese steel mills and Hamersley & Robe River of Australia and CVRD of Brazil on the same day.
The price settlement in the European market, between German steel mills and CVRD of Brazil, was concluded on January 22.
The Indian team was invited by Japanese steel mills for negotiations on iron prices and quantity for fiscal 1998 from the weekbeginning February 2.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
