Bloomberg reported that the China Iron and Steel Association lacks the authority to push through a plan to regulate iron ore traders and should step down from leading contract price talks after its failure to reach an agreement with suppliers.

Mr Xu Zhongbo a professor with the University of Science & Technology Beijing said the nation’s biggest steelmakers should form an alliance to directly negotiate prices with iron ore suppliers because the steel association does not enjoy full support from mills.

Mr Xu said officials at the steel association don’t understand enough about the commercial demands of steelmakers and international trading practices. The association also has no power over traders and should just focus on settling prices quickly.”

He said that China should have led a price accord this year, and could learn from Japanese mills which have set global benchmark prices 15 times in the past 20 years.

(Sourced from Bloomberg)