BaoSteel Chairman Mr Xu Lejiang told reporters in Beijing that it is in talks with mining companies and hopes to achieve a "win-win" conclusion.

Mr Lejiang said that Chinese imports of iron ore may equal last year's level at best and may fall.

He said “The supply and demand for iron ore has changed as prices fall. This must prompt the suppliers to rethink ore pricing. We hope to reach a pricing system that's sustainable over the long term.”

Chinese iron ore purchases dropped for a third straight month in June after Big 3 abandoned 40 year custom of annual contracts in favor of quarterly agreements as they bet on rising prices.

(Sourced from washingtonpost.com)