Economy

China's steel industry head retires

(Agencies)
Updated: 2011-02-22 14:44

BEIJING - Shan Shanghua, the head of China's steel industry association, has retired, Reuters reported Tuesday.

According to the report, the China Iron and Steel Association (CISA) appointed the vice-chairman Zhang Changfu, 65,as Shan's replacement.

The 64-year old Shan, appointed CISA secretary general in 2007, entered the public eye in 2009 when he vowed to squeeze 40-45 percent price cut from the big three global iron ore giants, Rio Tinto , BHP Billiton and Vale, the report said. 

Shanghai's Baoshan Iron and Steel had traditionally led the annual "benchmark" price negotiations. But the steelmaker was criticised for accepting a 70 percent price hike the previous year, and Shan promised a new "unified" approach to the talks as world iron ore demand withered as a result of the global financial crisis, it said. 

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Shan said China's position as the world's biggest iron ore consumer entitled it to a special "China price" that was lower than the one offered to Japanese and South Korean steel producers.

Meanwhile, Luo Bingsheng, the vice-chairman of the association, will also retire and be replaced by Wang Xiaoqi, a former official at China's State-owned Assets Supervision and Administration Commission, the report cited the CISA as saying.

Zhu Jimin, the president of Shougang Group, will become CISA chairman for 2011-13 session. Baosteel Group's president Xu Lejiang will be the next chairman.