The iron ore pricing mechanism should see innovations?as the industry continues to evolve, according to Liu Zhenjiang, Secretary General of the China Iron and Steel Association (CISA).?
Both steel mills and miners should agree on such mechanisms, he?told delegates at the Singapore Iron Ore Forum on Thursday May 24.
Liu added that using just one index to price iron ore has its limitations and that it would be fairer and more transparent to use a basket of indices.
The internationalisation of the Dalian Commodity Exchange iron ore contract could provide more price references for the market, and better reflect the market with smaller risks, he said.