China to establish iron ore working group

SHANGHAI, Jul 4 (SMM) – A group of steelmakers, led by Baowu Steel, planned to establish an iron ore working team to study major issues, monitor market development, help resolve seaborne iron ore-related problems, and propose suggestions to government authorities, according to the minutes from the iron ore market symposium held on June 27.

The meeting was chaired by China Iron and Steel Association (CISA) vice president Qu Xiuli, deputy secretary general Wang Yingsheng, market researchers and members from Baowu, Angang, Shougang, Shagang, Magang, Valin and Laigang.

Supply woes and greater demand were believed to have bolstered iron ore prices.

The working group is expected to ask central authorities to inspect the market and invite futures and derivatives experts as well as traders to develop measures to steady the market.

The minutes also reflected concerns about overcapacity. Fixed-asset investment in ferrous metal smelting and rolling processing industry expanded 30.6% in the first quarter.

Foreign miners are advised to adopt various pricing indices and continue to improve pricing mechanism for long-term contracts with Chinese steelmakers, according to the minutes.