According to Chinese news sources, Mr Luo Bingsheng, vice president of China Iron and Steel Association commenting iron ore pricing negotiations for contract year 2009 said that China has mapped out a new plan that could lead to closing the negotiations by the end of June.

He reportedly stressed that the new price should return to the level of 2007, namely by cutting at least 40%YoY.

Given traders and steel mills continue to import iron ore with the current pace, there would be a surplus of 200 million tons of iron ore stocks this year. Senior officials of Hebei Iron and Steel are said to remark that there is room for the iron ore prices to further decline and that CISA should stick to its position.