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Luo Tiejun, vice president of China Iron and Steel Association, called for a new pricing mechanism for iron ore, as the S&P Global Platts iron ore index increased significantly: $45.1 per ton compared with one month ago, accounting for a 63.6 percent increase. 

On Friday, the Iron ore Platts index hit $164.15 a ton, up $70.95 a ton since the start of the year, or 76 percent, its highest level in nearly nine years. 

The price rose by $31.1 per ton, accounting for 43.8 percent of the annual rise in the 14 trading days since December. 

"The rise is so fast and large that it has deviated from the fundamentals of supply and demand and greatly exceeded the expectations of steel mills, showing obvious signs of capital speculation," Luo said at an industry conference.

Luo suggests that China should adopt comprehensive measures to ensure the supply of iron ore, establish a new pricing mechanism, improve futures market rules and further strengthen supervision, so as to speed up the resolution of iron-ore related problems and build a strategic security support system for China's iron ore resources.

Global Times