November 22, 2008

Iron ore price negotiations - Smaller mills want their say

It is reported that China’s smaller steel makers want to be represented in annual iron ore price talks as they are paying higher prices for the raw material than larger rivals.

Mr Geng Bingxi deputy secretary general of the China Chamber of Commerce for Metallurgy Industry said Baosteel Group Corp should represent the whole industry in talks, rather than just the bigger mills.

He said that "China should study a new negotiation mechanism. The leading negotiator should represent the whole industry rather than some producers who enjoy long term contracts at lower”