Reuters reported that China's leading steel mills have begun talks in Singapore with the big three global miners on 2010 contract iron ore prices.

A report by the China Times newspaper said that delegations from Baosteel, Wuhan Iron and Steel and others are already in the city to hold discussions with BHP Billiton, Rio Tinto and Brazil's Vale.

A Chinese analyst who did not want to be named said Baosteel and the other big mills were under commercial pressure to sign an agreement as quickly as possible but under political pressure to hold out for a better deal.

He said “Spot market iron ore prices have been rising and settling early is a good idea but the mills do not want to be seen to agree too quickly.”