BEIJING, March 16 (Xinhuanet)-- China is concerned about the international iron ore price talks in 2006, and hopes that iron ore prices should be fixed fairly to achieve a win-win result between producers and consumers, Chinese officials said on Thursday.

    "China will keep a close watch on the progress of iron ore price talks, and take necessary legal measures to protect the interests of the country and relevant Chinese companies," said an official with the Chinese Ministry of Commerce.

    The official said iron ore prices will influence the growth of China's steel industry and the national economy. As China's steel industry is now facing hardship due to soaring production costs and declining profits, it will be difficult for the industry to face iron ore prices jump again.

    China is against any monopoly move in international trade, he said.

    According to statistics from the ministry, worldwide iron ore reserves amount to 140 billion tons, the exploration will last another 100 years if 1.3 billion tons are mined each year.

    Supply and demand are currently in balance, said the ministry. In 2005, a total of 1.25 billion tons of iron ore was consumed in producing 780 million tons of pig iron, while the global iron ore output was over 1.3 billion tons.

    China, the largest steel producer in the world, has seen its iron ore imports rocketing as its economy maintains nearly double-digit growth.

    In 2005, China imported 43 percent of the world's total iron ore shipment or 275 million tons.

    The ministry said China's surging iron ore trade not only brings profits to mining companies, but also benefits the economic growth of iron ore exporting countries and regions.

    But some international companies, leaning on their monopoly position in the international iron ore trade, obtained unreasonably high profits, and their move indeed hurt the interests of iron ore importing companies, said the ministry.

    The ministry noted that those international companies violated the principles of fair trade and went against with the healthy development of global iron ore trade.

    The National Development and Reform Commission (NDRC) is also highly concerned with the iron ore price talks. Officials with the commission said 2006 will be the first year for China to carry out its new development policy for steel industry.

    According to its development policy, the NDRC will control steel output in 2006 by phasing out low-efficiency steel factories, said the officials.

    The move is expected to cut China's iron ore demand by 60 millions tons, according to the NDRC. Enditem