People's Daily Online reported that it is reasonable for China Iron & Steel Association to head the iron ore negotiation on behalf of China's steel makers and strive to get a good price which is favorable to the mills.

Mr Yao Jian, spokesman of the Ministry of Commerce at a press conference said that "We will continue to support the guild's negotiation with iron ore suppliers so that a balanced, reasonable agreement reflecting China's role as a major iron ore importer can be reached as early as possible.”

Mr added that “China is a major iron ore importer which accounts for 60% of the world's iron ore trade volume. Chinese steel makers suffered huge losses due to the surge of iron ore price in the past three years.”

He said that “The business model of iron ore and the negotiation mechanism are the outcome of years of development which will continue to play their market roles. It is common practice in market economies that Industry associations manage trade and business of certain industries.”

Mr Yao alos noted that “In the future, industrial associations will regulate relevant trade issues according to industry development and national foreign trade strategies.”

(Sourced from People's Daily Online)