Posted on 07 Jan 2009
JFE Steel Co President Hajime Bada said on Tuesday the company wants prices of iron ore and coking coal for term supply in 2009/10 business year to fall to at least 2007/08 levels due to a precipitous decline in steel demand.
"The 07/08 levels -- that's the minimum for us," Bada told reporters at a reception for the Japan Iron and Steel Federation.
JFE Steel, the world's third biggest steel maker in terms of output, is the core unit of JFE Holdings Inc.
Iron ore prices have nearly doubled and coking coal prices have tripled this business year amid tight supply, but demand for steel has fallen sharply since late last year due to the downturn in the global economy.
Bada said talks with miners could be delayed this year, adding some mines expect a recovery in Chinese steel demand after the Lunar New Year holiday on January 26.
"We are hoping prices will be set by May at the latest," he said.
