Oriental Morning Post cited Mr Luo Bingsheng deputy secretary general of China Iron & Steel Association at a meeting of Chinese steel executives this week in Beijing as saying that the association is still in talks with global leading ore miners and there will be a single and unified import price for iron ore in China instead of existing spot price and contract price.

Mr Shan Shuanghu secretary general of association whiles speaking at the speech of at the meeting said that “If we settle down the contract iron ore price with the ore suppliers, that would be destined to be the single benchmark price for all ore imports into China. And all Chinese importers, either big ones or small ones, state owned or privately owned would all abide by this price. And steel mills without import license could entrust trading companies as agent, and the traders are allowed to collect some amount of agent fee. The association intends to put an end to the chaotic ore imports market and set up a new iron ore import pattern.”

Mr Shan also said that “Smaller steel mills and traders have imported excessive iron ore, which has offset the dwindling demand from other parts of the world and therefore over one half of seaborne iron ore has been shipped to China. The inflated iron ore demand from China has made this year's negotiations extremely tough.”

He said that “The price cut settled by Rio Tinto and Japanese mills has not well reflected the interest sharing relation between iron ore miners and steel mills and most Chinese mills would face difficulty to stay in business with current range of price cut. Therefore, all CISA members have agreed not to fall in line with the insufficient price reduction.”

Mr Shan also dismissed the media report quoting Mr Li Xiaowei vice chairman of the association saying that a deal could still be reached by month’s end. He said "That only represents his personal view. We would release the result officially as soon as the talks conclude."

According to an official attending the conference the meeting has also discussed the sensitive topic of the detention of Rio’s four employees. However, top executives from the big mills keep silent and are not available for comment.

(Sourced from Oriental Morning Post)