China Daily reported that global miners and steelmakers may opt for a new quarterly based iron ore pricing system in place of the existing annual negotiations to increase the volatility of steel prices and make the system more transparent.

Wall Street Journal, without revealing from where it got the information, reported that the new system is likely to be tested by end of the year,

The move comes at a time when China's steel industry is planning to revamp the iron ore import business after the detention of four employees of mining firm Rio Tinto for spying.

Mr Zheng Ge steel analyst with Wangda Futures Co Ltd said that "It is good news for both miners and steelmakers if the new system is adopted,”

Mr Cui Jingyi a steel analyst from Guitai Junan Securities said the big Australian miners may press for the new system, while Brazil's Vale SA may opt for annual pricing, as the spot price of Brazilian ore is more expensive than Australian ore.

(Sourced from China Daily)