China International Political Economy

Chinese steelmakers have agreed to pay higher steel prices according to Reuters.

Nonetheless, while Baosteel agreed to up to 96.5 percent more for iron ore from Rio Tinto it failed to reached an agreement with BHP Billiton creating the first ever differentials by quality and region since not all miners accepted the same percentage price increase.

The move by Baosteel sent shares prices down sharply and continues to add to China inflation woes affecting the China economy.