Chinese senior diplomat calls for rational iron ore price (2)

Wang said the continuing high price of iron ore is constantly eroding the room to move for the Chinese steel industry.

"This year, the steel industry in China is experiencing a hard time. If the condition for the iron and steel industry can not be improved, or if 'losses' occur over a long period of time, the demand and supply situation between overseas and Chinese steel enterprises will have to make adjustments, which in turn will lead to a frequent rise and fall in international iron ore prices. Ultimately this will harm both sides and lead to a 'lose-lose' situation," she said.

The comments were made at the Midwest International Mining Forum which aims to significantly raise the profile of the Australian Midwest iron ore industry and highlighting the significant economic, community and employment benefits that flow from multi-billion dollar Chinese resource investment projects.

Western Australian Premier Colin Barnett called the Midwest Region one of Australia's fastest growing resource areas.

"It is rapidly becoming a major new mining and economic zone not just for the state, but the country. At present, the region is home to around 40 investment projects and was responsible for resource sales of 2.5 billion U.S.dollars in 2011," Premier Barnett said.

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