Economy

CISA gives up on ore pricing

By ZHANG QI (China Daily)
Updated: 2010-04-29 14:54

BEIJING - China's steel lobby, China Iron and Steel Association (CISA), on Wednesday acknowledged that Chinese steel mills have signed individual deals with global miners, but said iron ore price negotiations have not ended.

"Considering the operating pressure and difficulties of steelmakers, they can now talk with the big three miners and buy iron ore at provisional prices under CISA's regulations," said Vice-chairman Luo Bingsheng.

"It is totally the individual business of companies," he said. "They (the three miners) offer a price we don't accept, that doesn't mean the end of negotiations. The price talks are still going on."

Previously, CISA didn't allow Chinese steelmakers to sign contracts until a national benchmark price came out.

They also asked domestic steel companies and traders with import licenses to stop buying iron ore for the next two months from Vale, BHP and Rio Tinto to protest the price monopoly.

Earlier reports said some Chinese steel mills have accepted the new quarterly pricing system, based on the previous three months' average spot prices or at a price agreed by other Asian steel mills.