Zhu Jimin: China's iron ore import continuing negotiation mechanism

Chinese iron ore imports will adhere to the negotiation and coordination mechanism. The representative of the National People's Government and the new president of the China Iron and Steel Association, Zhu Jimin, said that in the future, China’s iron ore import prices will continue to be negotiated.

According to Zhu Jimin, China’s dependence on foreign iron ore reached 62.5% last year. Zhu Jimin said that due to the rise in international iron ore prices, steel prices may continue to rise.

How to get rid of the iron ore dilemma? Zhu Jimin stated that on the one hand, it should reduce the dependence on iron ore, and on the other hand, it should reduce consumption and improve the grade performance of steel materials. “The performance of steel grades is generally lifted by 2 to 3 levels, and steel consumption will be reduced by more than 10%.” Zhu Jimin stated that reducing consumption is the focus of the country’s economic transformation.

In 2010, the long association mine that was discussed once a year was abandoned by the Big Three and replaced by quarterly mines that were discussed in a season. And this year's negotiations have also been admitted by the China Steel Association to be suspended. Deng Qilin, general manager of Wuhan Iron and Steel Company, who had just left the China Iron and Steel Association, said on March 7th: “From the beginning of 2009, the Big Three had the final say and there was no longer a price for the long-term mine.”