Hebei Iron & Steel Group denied a China Business News report that the nation’s steelmakers agreed to a 33% cut in contract iron ore prices.

Mr Tian Zhiping Vice President of Hebei Steel said that “The iron ore price talks are still going on. The China Iron and Steel Association would inform us immediately if it’s going to sign the agreement, but so far we haven’t heard anything.”

Earlier China Business News report cited unidentified sources reported that China agreed to the cut, matching an accord reached by Japanese rivals and Rio Tinto Group in May. The steel association on May 31 rejected the Rio price agreement and had been seeking a reduction of as much as 45%.

China Business News reported that China agreed to a price reduction in both Pilbara Blend iron ore fines and Yandi fines of 33% to 97 US cents per dry metric ton unit.

Mr Tian said that “Rio hasn’t become more flexible.”

(Sourced from Bloomberg.net)