China’s steel industry association has said it plans this year to unify the spot and long-contract prices for the country’s iron ore imports.
It will also set a ceiling for charges levied by import trading firms, as part of an effort to regulate the market. Which in other countries would be called price fixing but China has its own rules.
Luo Bingsheng, deputy chairman of the China Iron and Steel Association (CISA) and seen here, said the proposal was the top item of discussion at the steel industry body’s two-day semiannual meeting.
He said the term prices negotiated with global miners should become a benchmark unified price, and the import agencies could charge 3-5% in commission on top of the term prices.
The price talks, which are continuing, appeared to be snagged on China’s insistence upon bigger reductions than the 33% cut agreed to earlier with Japanese and Korean steel mills. News reports and industry analysts say China wants a 40% price cut.
China Daily reported that the annual talks were ongoing and CISA would keep working to push them forward.