According to research company UC361.com, Baosteel Group Corp China second-biggest steelmaker, agreed to accept a 23% increase in iron ore prices from Rio Tinto Group and BHP Billiton Ltd.

Mr Hu Kai an analyst at UC361.com the steelmaker will pay about USD 147 per tonne excluding freight charges for July quarter contracts. The increase followed agreements by Japanese mills.

He said that “Baosteel would not default on quarterly contracts.”

Mr Chen Ying vice president of Baoshan Iron & Steel Co the listed unit of Baosteel couldn’t immediately be reached on her mobile phone.

The China Iron & Steel Association said on June 10th that steelmakers in China have resisted efforts by miners to raise contract prices after steel prices dropped and the European debt crisis roiled markets.

(Sourced from http://preview.bloomberg.com)