The official phase of the price negotiations for the 2008-2009 term iron ore contracts between the Chinese steel mills and the global iron ore suppliers got underway today, according to Luo Bingsheng, the deputy general secretary of the China Iron and Steel Association (CISA).
According to the announcement by Luo Bingsheng, before beginning to negotiate on the price, the parties will discuss other issues and conditions related to the contract for a period of nearly one month.
Most analysts are expecting the iron ore price to increase by 25 to 50 percent in the new contract.