Term pricing system for iron ore not feasible, says Baosteel

SHANGHAI - China's top steelmaker Baoshan Iron & Steel Co Ltd (Baosteel) on Thursday said the existing term pricing system for iron ore does not benefit steel and iron ore companies as ore supplies have become tight.

Xu Lejiang, chairman of Baosteel, said the steelmaker is now diversifying its iron ore sources in Africa, Canada and South America to tide over the tight supply situation.

The company also feels that diversification is a better option as it no longer has that much of a say in the pricing negotiations.