Reuters quoted an industry executive that China's steelmakers have not given any ground in benchmark iron ore price talks and said that they could soften their insistence on a 40% price cut.

Mr Shan Shanghua secretary general of the China Iron and Steel Association said "The position of the Chinese side has never changed.”

He said that any news about our changes was speculation."

Mr Shan denied media reports on Wednesday that CISA could accept a price cut by between 30% and 35%. He said that “We insist on three principles during the negotiation the relation between the supply and demand, the balance of production costs between the two sides and the balance of rational profits between the two sides."

He added that "They are our principles. It is not sustainable if iron ore producers keep a high profit margin but steel mills suffer losses. It is common sense."