Influenced by international prices for steelmaking raw material, as it must import about 80% of its annual consumption of 1.2 billion tons China established a new state-backed sourcing company on Tuesday.
Global mining giants such as Rio, BHP and Fortescue Metals Group declined to comment on the situation but said there was no change in their dealings with Chinese customers.
The CEO of Fortescue Metals Group said that it would supply iron ore to Chinese customers under long-term contracts.
Chinese trade organization Caixin also said this month that the company will centralize its iron ore purchases.
However, BHP, the world's third-largest iron ore producer, which sells most of its production to China, said that history has shown that central iron ore purchase plans are not working.
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