Steel firms urge price fairness

QINGDAO: Taking the initiative in the 2009 iron ore price negotiations, Chinese steelmakers are demanding a unified benchmark import price to eliminate the gap between the spot price from India and the contract price from Brazilian and Australian suppliers, the head of the Chinese industry body said yesterday.

"We must seek one unified import price, which will help stabilize production and bring iron ore prices back to a reasonable level," Shan Shanghua, secretary-general of China Iron and Steel Association, told the 8th China International Steel and Raw Material Conference in Qingdao, attended by leading global iron ore suppliers and most domestic steel producers.

Compared with the current spot prices on imports from India, Chinese steelmakers were charged 18 to 23 percent more for iron ore from Australia and Brazil based on the long-term contract price.