On April 15 in Beijing, China Iron and Steel Association (CISA) officials met with Alberto Calderon, chief commercial officer of Australian miner BHP Billiton. During the talks, Alberto Calderon shared some new proposals in relation to the iron ore talks, while the CISA said it will discuss these with Chinese steel producers so as to decide whether to accept them or not.
The long-standing annual pricing system for iron ore contract prices appears at present to have practically collapsed. BHP Billiton, the third largest iron ore supplier in the world, was the first miner to raise the concept of an index pricing system.
On March 30, BHP announced that it had already reached agreement with many Asian customers regarding a quarterly pricing system, taking the placing of the previous annual pricing system. Chinese steel producers have not yet accepted the new iron ore pricing system.
Meanwhile, the CISA has denied that it requested Chinese steel producers to boycott iron ore imports. "It is not that we ordered a ban, it was only to show that we have the capability to resist."