China won't accept different prices for Brazilian and Australian iron ore as it did last year based on freight rates, a top China Iron & Steel Association official told Dow Jones Newswires on Tuesday.
Last year, Australian and Brazilian miners negotiated different prices based on shipping costs but CISA Secretary-General Shan Shanghua said that Chinese steel mills want to go back to a single benchmark price as in previous years.
CISA may also urge its members to stick to a uniform pricing policy while selling iron ore imported under long-term contracts on the spot market, Mr Shan said.
Mills failed to agree on a proposal to this effect last month but and Mr Shan said he could not confirm if it would be a success this time.
Mr Shan's comments come ahead of the association's annual meeting Wednesday and Thursday. Under the planned agreement, steel mills that want to sell excess iron ore in the spot market can charge an addtional service fee of 3%-5% on top of the cost of the iron ore in a measure aimed at keeping spot prices under check.
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