According to a report in China Securities Journal, China Iron and Steel Association has denied market rumors that it has set a 30% ceiling price rise in talks with iron ore suppliers.

The paper cited Mr Luo Bingsheng deputy general secretary as saying that “We have no intention to insist on any bottom line, like 30% as rumored, since we believe such pre settled bottom line would be detrimental to the progress of the ore talks."

Mr Bingsheng added that the rumors are not helping negotiations for 2008 iron ore imports. He said that association would pay close attention to how the negotiations could benefit the Chinese iron and steel industry's development.

According to rumors, the world's three major iron ore providers, BHP Billiton, Rio Tinto and CVRD, wanted to raise prices by least 50 percent.