The Australian press has reported that China's lead negotiator Baosteel has halted annual price talks with major iron ore suppliers BHP Billiton Ltd, Rio Tinto and Vale saying the miners' price demands are too high.

The Australian Financial Review said an official from Anshan Iron and Steel, China's second-largest steel maker, had told the paper that Baosteel had ceased to negotiate. The official was quoted as saying that "At the moment the talks are at a standstill. We are not even close to reaching a consensus.”

As per unconfirmed reports from a Chinese trader in Shanghai, China had said prior to the start of negotiations that it would accept a 30% price rise, though the miners asked for a 50% rise.