As reported by the "Global Times" on July 1, June 30 is the traditional deadline for iron ore price negotiations. However at 6:30 pm on June 30, China's steel makers had not succumbed to pressure from the world's three largest iron ore mining giants to sign unfair contracts. This indicates that "extra time" is required for the price negotiations, and the results cannot be predicted.

In 2003, China overtook Japan to become the world's largest buyer of iron ore, said Zhou Shijian, former president of the China Chamber of Commerce for Metals Minerals & Chemicals Importers & Exporters.

Prior to 2003, the international market price of iron ore was just 40 USD per ton, however prices have risen every year since, reaching nearly 200 USD per ton in 2008. Every year China strives to reduce prices in negotiations with the mining giants, however Chinese steel makers have had no choice but to concede and accept the bitter pill of rising prices.

As China has the world's biggest demand for iron ore, the mining giants have tried to take advantage of the opportunity and have raised iron ore prices as high as possible, Zhou said. Impacted by the financial crisis, international steel production has decreased, and iron ore prices have dropped significantly. China's high demand for iron ore has become a lifesaver for the mining giants.

China reasonably proposed to reduce iron ore prices by 40 to 45 percent; however the three mining giants immediately turned against China when their situation recently improved, hoping to force China to sign unfair contracts taking advantage of recovering international market prices.

By People's Daily Online