Chinese Ministry of Commerce spokesman Yao Jian said on March 16 that China's interests should be reflected in the ongoing iron ore price negotiations, while also stressing his country's intention to stick with the long-term iron ore price agreement mechanism.
As reported by international news sources, although Mr. Yao stated that his ministry and the industry ministry will support Chinese steel firms in the iron ore talks, he did not reveal the manner of the support. Minister Yao, who was speaking at a regular news conference, also said that big price swings should be avoided in iron ore prices.
The Chinese minister's comments came one day after Australian Trade Minister Simon Crean said that neither Australia nor China should intervene in the iron ore talks between Chinese steelmakers and Australian miners.
As SteelOrbis previously reported, Mr. Crean assured that Australia would also keep away from the iron ore benchmark price talks, in which Australian iron ore miners BHP Billiton and Rio Tinto seek price hikes of up to 90 percent.
The minister was reacting to a news report which revealed that Chinese PM Wen Jiabao was asked by some major Chinese steelmakers to take a role in the negotiations. According to a China Securities Journal report on March 13, the vice president of the China Iron & Steel Association (CISA) and the chiefs of more than 10 major Chinese mills, including Baosteel, Wuhan Iron & Steel, Anshan Iron & Steel and Hebei Iron & Steel, sent a joint letter to Wen, asking him to view the talks as "a matter of national importance."