According to Mr Yang Siming, board chairman of Nanjing Iron and Steel Group, iron ore benchmark price in this year can be settled every quarter on the basis of steel market performance and forecasts.

Mr Yang made this suggestion against a backdrop of worldwide iron ore oversupply. He said that usually new benchmark price will be effective as of April 1st. However, due to unclear global economy, contract ore price negotiation implies risks for both suppliers and consumers. He added that quarterly pricing could lower the risks resulted by price fluctuations for steel and iron ore.

Mr Zhu Kai president of the giant's subsidiary in China said on the other hand, Brazil's Vale would cut iron ore output by 25% this year and would halt the productions of high-cost and low-grade iron ore,

China imported 8.1 million tonnes of iron ore from Brazil in this February, rising significantly from January figure of 4.29 million. An industry analyst forecasts China's iron ore imports from Vale in Q1 will increase 40% from last year.

(Source: China Securities Journal)