Why can not China accept index pricing in iron ore negotiation?

[metalbiz888]

Jan.20 MetalBiz—The annual iron ore negotiation has started, but is much later than that of the negotiations in the previous years, which usually held in the fourth quarter of the former year. This is mainly because several rules of the traditional price fixing system have been broken in the iron ore negotiation of 2008. Therefore, many discussions should be held on this year’s price fixing system.

As for the price fixing mechanism, an issue of great concern is the controversy over index pricing, that is, Australian iron ore giants BHP Billiton tried to promote iron ore index pricing mechanism in the world, while China Iron and Steel Industry Association (CISA) said that China will not accept that. In that case, why China can not accept the iron ore index pricing? For further info visit chinametalbiz.com

 

[CFDplayer]

because when Australian become a rule-maker in the index pricing, the biggest buyer lost control and power,like LME, is nothing but a mechanism where makeing huge profit and a power in cooper pricing.