Two Chinese private steel makers signed a strategic cooperation agreement aimed at helping them meet competition in the global steel market, after Chinese steel makers last week accepted a 19% iron ore price hike by suppliers, reported the official Xinhua News Agency over the weekend.

Under the agreement signed Sunday, Jiangsu Shagang Group Co. and Shanghai Fosun High Technology (Group) Co. will strengthen cooperation in the purchase of large quantities of iron ore, coke and scrap steel, according to Xinhua.

Last week, China's steel producers accepted a 19% price hike for iron ore fines and lump, and a 3% price cut for pellets, for 2006 contract terms with Australia's BHP Billiton Ltd. (BHP), the U.K.'s Rio Tinto PLC (RTP), and Brazil's Companhia Vale do Rio Doce (RIO), or CVRD.

The three iron ore suppliers account for a combined 70% of global iron ore export sales.

The two Chinese companies will also strengthen their exchanges of market information and marketing experiences, and pursue cooperation over sales channels, pricing and technology development, the news agency said.