Jia Yinsong, inspector at the raw materials department of China's Ministry of Industry and Information Technology (MIIT) stated at a press briefing on March 23 that he hoped the long-term iron ore price contract system will continue and keep iron ore prices at fair levels. He also expressed the hope that any monopolistic action which does not conform to the law of market economy would be resisted and opposed.
In his statement, Mr. Jia said, "In China, the iron ore negotiations are carried out between enterprises. Presently, Baosteel represents the Chinese steel industry in negotiations about iron ore with foreign parties. We hope to regulate Chinese iron ore imports and to maintain the long-term price agreement system which can benefit both buyer and seller. We also hope to consider the benefit of all concerned parties and keep the iron ore price at a fair level."
He went on to state that recently foreign iron ore suppliers have been demanding massive price increases, placing great difficulty on the iron ore negotiations. In this situation, the Chinese steel industry will be faced with losses.