At the Fourth China Steel and Raw Materials Industries Forum, the China Iron and Steel Association (CISA) stated that a new price index-based system is needed for the pricing of iron ore.
Luo Bingsheng, vice chairman of the CISA, said that the Platts Index on which current iron ore prices are based has many defects. The application of the Platts Index in iron ore pricing makes steel prices fluctuate more frequently, he stated. Regarding a possible new pricing system, Mr Luo revealed that the CISA is currently carrying out research on the issue.