China's steel and iron industry have called on major iron ore miners to collaborate with the government to address problems remaining after prices for iron ore were agreed.

"The negotiations on iron ore pricing have finished but relevant work is not yet finished," said a joint statement yesterday from the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters and the China Iron and Steel Association.

China's biggest steelmaker, Baosteel Group, which represented Chinese steelmakers in the negotiations, agreed on a 19 per cent price increase on Tuesday with Australia's BHP Billiton Ltd.

"Negotiations for the 2006 long-term contract breached rules," the joint statement said, adding the two organizations "strongly hoped" Chinese users and foreign suppliers could find a feasible way to resolve the problem.

Officials with the iron and steel association declined to explain in detail.

But the comment about breaching rules might refer to the fact that iron ore suppliers signed contracts with some minor steel producers separately, said Tian Shuhua, an analyst from China Galaxy Securities.

Usually, in negotiations for long-term contracts, the benchmark price is settled between the largest importer, which was Japan's Nippon Steel before 2005, and major miners.

Source: China Daily