China’s Mills Are Resisting Higher Iron Ore Prices

Steel mills in China, the world’s biggest, are reiron ore fines grinding mechanism in ball millsisting efforts by Vale SA, Rio Tinto Group and BHP Billiton Ltd. to raise contract prices after steel dropped and the European debt crisis roiled markets, the China Iron & Steel Association said.

“The outlook for the European market is unclear and steel prices may keep falling,” Shan Shanghua, general secretary of the association, said in an interview. “I dare say right now no Chinese steelmakers would accept the third-quarter prices asked.” Vale, BHP and Rio, the biggest iron ore exporters, may demand a 30 percent price increase for the July quarter, China Steel Corp. said last month. Falling steel prices in China may force mills to cut output and default on quarterly iron ore contracts, Baosteel Group Corp. said June 8.