A Chinese delegation, including representatives from 16 state-owned companies and three private companies, is currently in Brazil to initiate negotiations for the 2008 iron ore contract price talks.
The delegation is expected to hold talks first with Companhia Vale do Rio Doce (CVRD) in Brazil, and then with the other major iron miners, BHP Billiton and Rio Tinto, in Australia.
For 2007, Baosteel and CVRD had agreed on a 9.5 percent increase in December 2006 - much earlier than expected. Considering the strong steel market and the high Indian iron ore prices, the iron ore contract prices for 2008 are expected to increase by a higher rate.
The new annual contracts will come into effect on April 1, 2008.