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China opposes the proposed iron ore index-pricing model 

Chinese steel plants stand firmly against the iron ore index pricing system proposed by BHP Billitons, according to Shan Shanghua, secretary general of China(cnmining) Iron and Steel Association (CISA).

Earlier, BHP Billitons claimed to insist the index pricing system so as to set iron ore prices on the basis of dynamic supply and demand situations.

"Such index pricing model means steel plants have to sign large-amount contracts with iron ore miners before the prices are fixed on spots index, which will give more advantages to iron ore producers," said Shan Shanghua.

But BHP also admits that it would take several years for the new pricing model to come out.