China's Ministry of Commerce (MOFCOM) has published on its website a statement by a ministry spokesman regarding the outcome of the 2008 international iron ore price negotiations.
The ministry spokesman noted that Baosteel had succeeded in concluding the 2008 iron ore talks with the Brazilian mining companies. He added that in recent years the long-term contract price of iron ore had continued to rise, having a great impact on the Chinese steel industry and on related sectors in China. In particular, with the strong rise in iron ore prices for 2008, along with the impact caused by rising coke prices and logistic costs, China's steel industry has to face growing pressure from rising production costs.
In addition, the ministry spokesman emphasized that the long-term contract trade system for iron ore held significant meaning for the long-term and stable partnership of both sides and that China appreciated both sides' efforts to maintain this system. In conclusion, the spokesman added that iron ore suppliers and consumers depend on each other to maintain a fair and reasonable trade environment for the purposes of win-win cooperation.