China's seven major iron and steel producers have agreed not to raise the price of their steel for Olympic use when international price of iron ore soared 70 percent, Liu Zhihua, deputy mayor of Beijing revealed during a recent visit to the construction sites of the National Stadium and the National Swimming Center.

The shooting up of iron ore price on international markets have brought us a severe situation since we need a huge amount of steel for Olympic venues, said Tan Xiaochun, person in charge of the construction of the National Stadium, adding that the "bird nestle" alone would need 41,800 tons of steel.

The soaring international price will surely driver domestic price higher, said Liu. BOCOG leaders have discussed the matter with China Iron & Steel Association as well as major steel producers including Baosteel, Shougang Group and An'shan Steel Group.

By People's Daily Online