China's premier yesterday said Beijing would let the market decide the global price of iron ore, easing fears in Australia and Brazil that the Chinese government was planning to cap the price of imports following last year's huge rises.

Wen Jiabao, speaking in Canberra on the second day of a four-day visit to Australia, said "supply and demand" would dictate export prices for the mineral, but added that governments should come up with a "fair pricing mechanism".