BEIJING (Commodity Online): Following last year’s fiasco and this year’s adamant stand of China, big iron ore miners have decided to neglect China and go ahead with their price negotiations with Japan and other countries.
 
China is the world’s largest consumer of iron ore. The leading three iron or producers in the world, Brazil’s Vale and Anglo-Australian companies Rio Tinto and BHP Billiton, have sidelined Beijing from annual talks to set a benchmark contract price.

The companies plan to present a take it or leave it price to Chinese steel mills once negotiations with Japan are complete.

Media reports on this have come out a day after Chinese authorities said they had concluded a commercial espionage probe relating to Rio Tinto executive Stern Hu but gave no indication of whether the Australian passport-holder would face trial.

Hu and three other Rio employees were arrested in Shanghai in July during last year’s iron-ore talks, prompting concerns within the industry about dealing with the fast-industrialising nation.

Annual iron ore pricing negotiations traditionally begin with Japan around November and take place alongside similar negotiations with China.

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