No deal yet on iron ore contracts

China's negotiations with three major suppliers for iron ore pricing were still continuing, according to the country's second largest mill, Hebei Iron and Steel Group.

The company's vice-president Tian Zhiping was quoted yesterday by Bloomberg News as saying: "The iron ore price talks are still going on. China Iron and Steel Association (CISA) would inform us immediately if it's going to sign the agreement, but so far we haven't heard anything."

His remarks came as a denial to earlier reports by China Business News, which said China had agreed on a 33 percent cut from last year's price, albeit for six months rather than for a whole year. Earlier, Japanese and South Korean rivals and Rio Tinto had agreed to a 33 percent cut in iron ore prices for the year.