October 11, 2008

Iron ore price negotiations – CISA opposes breaking rules

It is reported that Mr Luo Bingsheng, the executive vice chairman of China Iron & Steel Association, indicated on April 10th that the rules reflect win to win principle and both requests from suppliers and demanders, so the rules should be respected and maintained.

He said “Chinese iron and steel industry does not agree to change iron ore price negotiation rules.”

Mr Zhang Qi president of China Development Institute thinks that the iron ore negotiation involves in fair and impartial problems and if the other side makes bold to amend rules in long term period of validity, then Chinese enterprises can use law weapon to reject.

He added that in response, Chinese enterprises should make efforts to express own views to strive for the rights and interests. On the other hand, we should have done the worst intention, after all, iron ore is a seller’s market, Chinese enterprises should fully evaluate the advantages and disadvantages after the broken negotiation.