Commenting on the ongoing iron ore contract price negotiations, Zhu Hongren, spokesman of China's Ministry of Industry and Information Technology (MIIT) stated, "If short-term profit is overemphasized, the outcome may be a ‘lose-lose' situation. If both negotiating parties manage to reach a long-term cooperation agreement and consider their mutual benefit, this will be good for both sides and cooperation will be able to continue with favorable prospects.
On the same issue, Mr. Zhu went on to say, "Iron ore is a major raw material for iron and steel production, and the stability of the steel industry is closely related to the whole national economy. The steel industry needs to operate with long-term stability. In such an industry, a stable raw material supply is very important and necessary."
Concluding, the MIIT official said, "Currently, the iron ore negotiations are being carried out among enterprises. To secure stable, smooth and healthy development of the steel industry, other related government departments should also show interest in the negotiations.
Emphasizing the important role of China in the international iron ore trade, another MIIT official Xin Guobin said that China's climbing demand for iron ore had made the country's imports account for 75 percent of the world's iron ore trade.