Xinhua reported that the China Iron and Steel Association announced on Sunday that Chinese steel companies have refused to accept the iron ore price cut reached between Rio Tinto and Japan's Nippon Steel Corp.

CISA in a statement on its website said that “The price cut failed to reflect the real supply and demand situation on the international market and would lead to overall losses for Chinese steel companies.”

CISA said that "This does not represent the mutually beneficial relationship between steel producers and iron ore suppliers.”

It categorically said that "Chinese steel companies will not accept or follow the price cut."

CISA has insisted that the iron ore price should fall back to 2007 levels, which meant a price cut of more than 40% in the annual contracts of iron ore.

(Sourced from Xinhua)