China Iron and Steel Association: China Minmetals Group should include domestic indexes in pricing options during negotiations with the four major mining companies.

On December 18th, the 11th China Iron Ore Trading Platform Member Conference was held in Hangzhou. Luo Tiejun, Vice President of China Iron and Steel Industry Association, attended the meeting and delivered a speech, comprehensively analyzing the current operation situation of the steel industry, the development status of the iron ore industry chain, and in-depth discussions on the optimization path of the iron ore pricing mechanism, calling for deepening cooperation and coordinated development among all parties in the industry chain to jointly promote the high-quality and healthy development of the industry. The Bei Tie Index, formed based on real spot transactions at ports, should be the core reference for pricing. To further improve the Bei Tie Index, Luo Tiejun called on all parties to actively participate: China Minmetals Group should include domestic indices in pricing choices in negotiations with the four major mining companies; the Bei Tie Center should expand data coverage, collect more transaction data on iron ore of different grades to lay the foundation for enriching the index system; trade companies and steel companies should boldly use the Bei Tie Index for pricing in domestic ore and trade ore transactions, and provide timely feedback on transaction prices to form a continuous and complete transaction data chain. At the same time, the industry needs to continuously study the relationship between domestic indices and swaps/futures, clarify the market composition and price formation logic.