Wuhan Iron & Steel Group (WISCO), China's third-biggest steelmaker, announced Wednesday that it had signed a long-term iron ore contract price with Corporacion Venezolana de Guayana (CVG), the first-ever contract under China prices.

According to the agreement, WISCO can buy iron ore from CVG at a price which is at least $20 lower than that set by Vale with Japanese and South Korean steel mills in the first three quarters of the year.

The new price will save WISCO 400 million yuan ($59 million), and represents a significant starting point for China to move away from the price control made by the world's top three mining giants, Vale, Rio Tinto Group and BHP Billiton Ltd.

China's huge demand helped WISCO make this agreement come true. But the deal will at some point have an impact on the top three giants, as WISCO's annual price contract counters their favorable quarterly pacts.

WISCO signed a seven-year long-term iron ore purchasing contract with CVG in October 2009 and, also last year, WISCO bought more than 480,000 tons of iron ore from Venezuela at an average price of 668 yuan ($98.52) per dry ton, which helped the company save 152 million yuan ($22.42 million).