21 Century Business reported that amid the purchasing and anti purchasing match between BHP Billiton and Rio Tinto, China's top steelmaker Baosteel for the first time revealed the intention to bid for Rio. Mr Xu Lejiang Chairman of Baosteel Group said that they are considering this option and that there is great chance of making a bid.

The report cited Mr Lejiang as saying that “"We are thinking about it. The issue is still in the studying period and they are talking about how to purchase, with no pact signed with the target ore supplier.

He also said that “If you ask how big is the chance, it's quite big, for there are kinds of possibilities, aren't they? There is a strong possibility we would make a bid."

According to Mr Lejiang “If Chinese steelmakers take over Rio, the material's monopolized situation will be smashed, though it may not promptly reflect on the long term contract.”

The earlier reports put the size of a potential Chinese bid at US$200 billion. It is unclear if Baosteel, even as part of a consortium, would want to commit the resources needed for a big enough offer. The report quoted Mr Lejiang as saying that "I am afraid USD 200 billion would not be enough.”

Mr Meng Haibiao a spokesman of BaoSteel however said that he had no comment on the report in the 21st Century Business Herald's online.