With the approaching of deadline of the iron ore price negotiations, iron ore price for this year is still uncertain. However under price rise expectation steel prices have hiked in Shandong rapidly so traders are busy on hoarding steel products, while the steel mills are the ones who are really worried.

 
March 20th, more than 1000 delegates from steel trade enterprises in Shandong gathered in Jinan to participate the 2010 Iron and Steel in China—Jinan Steel Situation Forum. And Experts and business representatives attributed the prices rapid hike to the negotiating iron ore price. 

Guo manager of Shandong Shun Tai Iron and Steel Co Ltd said “From early February, steel prices almost change every day. We mainly produce WRC and the price has rose by about CNY 500 per tonne this half month. It seems that price rise has become the norm in the recent steel market.”

 
other trader from Weifang disclosed the general psychological of steel trade enterprises by saying that “Since iron ore price will certainly to be raised, so it is a good opportunity to hoard steel products as long as the result of the negotiation doesn’t come out.”

 
owever facing the substantially increasing long term ore prices, Chinese steel mills are worried. It is reported that Chinese steel mills can no longer afford such a high price of iron ore