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      2. China yet to receive Rio message about new pricing mechanism
        Informed Sources:people daily    

        China has yet to receive the official message from Rio Tinto that China can use a different pricing mechanism in the 2010 iron ore negotiations, said Chen Xianwen, director of the Marketing Department of the China Iron and Steel Association (CISA) here Tuesday.

        Sam Walsh, chief executive officer of Rio Tinto's iron ore unit, said Monday in Sydney that China could purchase iron ore under a new mechanism next year on the condition that China did not put up any unreasonable terms.

        "Setting a different pricing mechanism for China will be a beneficial solution both to China and Rio Tinto," said Chen.

        Shan Shanghua, secretary general of the CISA, said, "China will not accept the price that the three biggest mining companies offered to other countries' mills. Since China imports nearly half of the world's iron ore output, it's fair for us to ask for a bigger price cut."

        China's steel output was expected to reach 550 million tons in 2009, up 10 percent from a year earlier, driven by the government's 4-trillion-yuan (586 billion U.S. dollars) stimulus package, Luo Bing, vice-chairman of the CISA, said Tuesday.

        Rio's new act was considered a sign of improving relations between China and the world's second-largest iron ore exporter. The relationship strained after four Shanghai-based Rio Tinto executives were arrested on charges of commercial espionage in August.

        Source: Xinhua

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