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China's Jinan Steel to maintain normal production
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Jinan Iron and Steel Company said it is unaffected by the business suspension with Brazil's largest iron ore supplier.

The company's reserves in the meantime is abundant to meet the demand of normal production, said the company in a statement on Wednesday.

The ore supply of the company came mostly from Australia, and also from India and Chile, said the statement. After the recent price hike called by Brazilian suppliers, the company quickly bought iron ore from other nations as well as using domestic supplies.

The current ore stock the company held could well meet the production demand, and the operation would not be affected by the situation as the market now has more supply than demand, said the statement.

Companhia Vale do Rio Doce, Brazil's largest mining company, has demanded from China's steelmakers a 12 percent price rise over the long-term contract price they had previously negotiated. The request was turned down by China's manufacturers collectively, followed by a boycott of Vale.

(Xinhua News Agency October 30, 2008)

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