Chinese steelmakers and Indian iron ore producers will try to negotiate iron ore prices based on long-term supply and demand rather than spot market prices within this year, the China Business News reported, citing a industry association official.

Luo Bingsheng, vice president of the China National Iron and Steel Association (CISA), said during a China-India iron ore summit that domestic steelmakers should ally as soon as possible to start price talks with Indian iron ore producers.

He suggested that the two parties negotiate the price once a year, the newspaper said.

China's steelmakers currently purchase Indian iron ore based on spot market prices, which can be very volatile.

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