The official China Securities Journal reported that China's steel industry association expects foreign miners to call for a 20% to 30% increase in benchmark iron ore prices in 2010.
Mr Luo Bingsheng vice chairman of the China Iron and Steel Association told the newspaper that the proposed price rises would complicate negotiations with Rio Tinto and BHP Billiton of Australia and Vale of Brazil.
Mr Luo's comments were in line with current market expectations, with China's surprisingly resilient demand for steel already prompting a number of banks to revise their benchmark price forecasts for 2010.
Macquarie Bank said that Australian iron ore fine prices were likely to increase 30% next year compared to a previous estimate of 10% while both RBS and Societe Generale raised their forecast of the 2010 hike to 20% from 10%.
Mr Luo told the newspaper that prospects for the Chinese steel industry in 2010 were much better than this year, with crude steel demand likely to increase by another 60 million tonnes.
CISA said last week that total crude steel output for 2009 was expected to reach 565 million tonnes.