According to foreign reports, South Korea's POSCO (005490.KS) CEO Chung Joon-yang said that the company and other steel makers want to go back to the iron ore suppliers to be able to return to the annual contract system.

Chung Joon-yang comment Thursday Pulu Chu demand weakness in the occasion of the vulnerability of the industry, but also the issue most strongly dissatisfied with the current spot pricing mechanism in the signal; iron ore spot price volatility, stock-based pricing mechanism in order the profits of the steel industry greatly traumatized.

Vale (VALE5.SA) chief executive, said Murilo Ferreira, the world's largest iron ore industry is preparing to consult with customers on their preferred pricing mechanism but does not allow customers to any conversion.

The 2008-09 financial crisis led to the global steel industry under the leadership of the Chinese steel mills, iron ore spot price slump, exit the system of annual contract pricing.

However, Chung said, manufacturers need the stability of the former old system so that companies can more accurately estimate costs.


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