China to access risks of iron ore price indexation

China Iron and Steel Association (CISA) will carry out risk assessment of the indexation of iron ore price, said Wang Xiaoqi, the newly elected Vice-Chairman of CISA.

He said speculation in raw material, including iron ore, is making severe injury to Chinese steel industry. "Iron ore supply miners, distributors and steel mills should jointly avoid the risks brought by iron ore price fluctuation."

After the collapse of yearly pricing mode in 2010, iron ore contract price is now increasingly close to spot market. Just in Feb, China's import iron ore price made historical record at US$198 per tonne.

Wang Xiaoqi, the former director of the planning and development bureau of the State-owned Asset Supervision and Administration (SASAC), was elected the Vice-Chairman of CISA in succession to Luo Bingshen.