Baoshan paying short-term prices for iron ore imports

Baoshan Iron and Steel – part of Shanghai Baosteel Group (600019.SH) – has started importing iron ore from international miners using prices agreed to on a temporary basis, AFP reported. The announcement comes after the collapse of the annual benchmark pricing system earlier this year, which was replaced by quarterly pricing. The China Iron and Steel Association (CISA) asked steel makers to boycott ore from miners Vale (VALE.NYSE), Rio Tinto (RTP.NYSE, RIO.LSE, RIO.ASX) and BHP Billiton (BHP.NYSE, BLT.LSE, BHP.ASX) in order to protest what it considered a market monopoly, but steel makers have resisted. "Changes to the system is a general trend," said Ma Guoqiang, Baoshan’s general manager. "To address these changes, [Baoshan] is conducting research into the impact of different pricing mechanisms on the company’s operations and countermeasures to be taken."