According to the China Iron and Steel Association (CISA) general secretary Shan Shanghua, the CISA will this year for the first time include a representative in the Chinese delegation at the new iron ore negotiations, with the aim of improving its communication with and boosting coordination among domestic steelmakers at the talks. Baosteel will still remain the lead negotiator on the Chinese side in the upcoming talks with the world's three iron ore giants, i.e., BHP Biliton, Rio Tinto and Vale.
In Mr. Shan's view, the iron ore negotiations should deal with the international market prices as a whole, no longer discriminating between long-term contract prices and spot prices. On the domestic side, Mr. Shan suggested that a system of representative agents should be set up, with either merchandisers with import licenses engaging in import activity on behalf of steel mills, or large steel mills importing on behalf of small and medium sized mills that do not have licenses. Furthermore, the fees charged for such import activity would be kept within certain levels.