China is likely to begin new round negotiation with the three world's iron ore giants on iron ore prices after Chinese Lunar New Year.

Baosteel, as China's largest steel maker, and the China Iron and Steel Association (CISA), on behalf of Chinese steel enterprises, are negotiating with the iron ore giants, Rio Tinto, BHP Billiton and Vale.

China also requires new contracts to take effect as of January 1, instead of April 1 in the past, in a bid to cut the time of high prices by three months; while BHB Billiton Ltd. strongly proposes pegging of the pricing method to index, to facilitate operation of prices.

Vale only agreed to cut the price by 10 percent, while China insists on a 40 percent price cut.

The three iron ore giants are delaying time in hope of turnaround of economic situation and warm-up of steel market, which will boost up prices. Source: Yieh.com