Bloomberg reported that China's smaller steelmakers want to be represented in annual iron ore price talks as they are paying higher prices for the raw material than larger rivals.

Mr Geng Bingxi deputy secretary general of the China Chamber of Commerce for Metallurgy Industry said that Baosteel should represent the whole industry in talks, rather than just the bigger mills.
Mr Bingxi at a Umetal.com conference in Xiamen told reporters that “China should study a new negotiation mechanism. The leading negotiator should represent the whole industry rather than some producers who enjoy long-term contracts at lower prices.''

Baosteel represents China's 16 largest steelmakers in annual iron ore contract price talks with Cia Vale do Rio Doce, Rio Tinto Group and BHP Billiton Ltd.

The top 10 privately owned steelmakers, with a combined annual capacity of as much as 60 million tonnes, formed a group in December 2007 to jointly invest in overseas mines. The group is still awaiting approval from the National Development Reform Commission.