It is reported that BHP Billiton has assured the biggest buyers of iron ore, Chinese steelmakers, that it will refrain from using a potential takeover of Rio Tinto Group to control prices.

Mr Shen Wenrong chairman of Shagang said "We told them we want to see reasonable iron ore prices after the merger. They said the prices will continue to be decided by the market."

Mr Shen added that "In my view, BHP and Rio have had an alliance in pricing iron ore for a long time. We have not had and are unlikely to have, any benefits even if they don't plan to merge."

Mr Marius Kloppers CEO of BHPB met executives of Jiangsu Shagang Group Co, Wuhan Iron & Steel Group and Magang (Group) Holdings Co in Shanghai.