Dow Jones Newswires reported that China would not accept different prices for Brazilian and Australian iron ore as it did last year based on freight rates as it is firm on uniform iron ore cost and that Chinese steel mills want to go back to a single benchmark price as was the case in previous years.

Mr Shan Shanghua secretary general of China Iron & Steel Association said that "There will be one price for all. We will not take shipping costs into consideration. It is a question of fairness of competition."

Last year, Australian and Brazilian miners broke the tradition of a single benchmark price and successfully negotiated different prices based on the varying costs of different shipping routes. The Anglo Australian miners said their price increases ought to reflect the cheaper cost of shipping Australian ore to Asian mills.

A media report last week had suggested Chinese negotiators might accept different rates this year too, but Mr Shan ruled out any such plan.