According to Shanghai Baoshan Iron and Steel Corp, representing China at the third round of price negation on global iron ore supply, the negotiation has been complete, but the two sides failed to reach an agreement.

Bao Steel noted that the reason for the fruitless negotiation lies in the price increase of steel in China, which is regarded by ore suppliers as the indicator of hot demand of iron ore in China. However, Bao Steel and other steel companies insisted it is just a contemporary rebound of the price drop late last year. A price drop, says Baosteel, is still justified.

However, if the two sides still could not reach an agreement till Apr. 1, the iron ore will be sold at the price agreed upon last year.

Globally, the situation that supply exceeds demand still remains. Although China imports some 60 percent of its iron ore from global top three suppliers, China is now diversifying its import channels, with that from India taking up 25 percent of the imported iron ore.

By People's Daily Online