SteelOrbis Shanghai
BHP Billiton has recently made great efforts in lobbying Chinese mills to buy their spot ore materials on an index-linked pricing basis. Regarding this issue, CISA's Secretary General Shan Shanghua clearly stated that domestic mills can make purchases of spot supplies and set their pricing basis with the suppliers within the current fiscal year (from April 1, 2008 to March 31, 2009), but index-linked pricing will not be allowed to be applied in imports of iron ore for the coming year. China will insist on the long-term iron ore negotiation system, and if any mill disobeys the rules and continues to sign contract with suppliers on an index-linked pricing basis, then this company will be deprived of qualification of importing iron ore.