Major Chinese steelmakers have set up a small group to investigate whether "non-market factors" have caused iron ore prices to soar and appeal to the government to help maintain market stability.
According to the meeting minutes documents seen by Reuters, the executives of eight steel enterprises, including Baowu Iron and Steel Group of China, Hegang Group, Shagang Group of Jiangsu Province and Anshan Iron and Steel Group, held a meeting on June 27 in Beijing, China Iron and Steel Industry Association (CISA). These eight steel enterprises account for 30% of China's steel production.
A senior official at the meeting of SISCO confirmed that the document was true, but refused to be named because he was not authorized to speak to the media.
The purpose of these meetings is to discuss strategies to cope with the soaring price of imported iron ore. Iron ore prices have risen 69% this year, hitting a record high on Wednesday.
The eight steelmakers will set up an investigation team, led by Baowu Iron and Steel Group, with the assistance of several others, to investigate the pricing methods of imported iron ore, work with major futures exchanges to stabilize the market and request government departments to "maintain market order".
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