With the big three iron ore mining giants - Vale, BHP Billition and Rio Tinto - achieving the switch to a quarterly pricing system and also obtaining their desired price increases, China's Ministry of Finance is rumored to be considering a tax reduction for domestic iron ore suppliers, aiming at supporting the domestic iron ore industry and reducing reliance on imported resources.
According to the expectations of local market players, such a possible tax reduction would mostly benefit domestic small and medium sized steel producers, since the large domestic steel mills still depend greatly on imported materials.