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CISA admits defeat, quarterly iron ore pricing system ushers new era

Beijing: The 40-year-old annual iron ore pricing system was declared dead yesterday by the one body that had fought so hard to keep it alive, the China Iron & Steel Association (CISA.  A senior official admitted at a press conference that this year's negotiations had stalled and Chinese steel mills were free to pursue their own deals.
"Individual steelmakers can approach the global miners for supply," said Luo Bingsheng, CISA deputy chairman.
"The three iron ore miners are threatening with a supply chop unless domestic steel mills accept their price hike claim before the deadline, which is 90-100 percent higher," he added.
Capesize owners the world over are rejoicing as freight rates have soared in the past week and look set to continue to climb as Chinese mills pursue urgent restocking of ore supplies now that the annual tit-for-tat price wars are out the way.  [29/04/10]

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