At the World Steel Association's (worldsteel) 45th annual meeting held in Paris on October 12, Zhang Xiaogang, newly-appointed chairman of worldsteel and president of Chinese steelmaker Anshan Iron and Steel Group (Ansteel), noted that, regarding iron ore contracts, what is important is stability of prices, not that the contracts are concluded on quarterly or half-year basis.
Mr. Zhang explained that China imports high tonnages of iron ore from Australia and Brazil, but when the raw material orders arrive in two or three months' time prices will already have changed.
The new worldsteel chairman also suggested that raw material producers and steelmakers should share the risk as well as the profit.