The Australian reported that China is redrawing battle lines in a bid to control iron ore term prices.
The report cited a senior official with the China Iron and Steel Association warning of a large degree of difficulty in ongoing price talks because global miners want 20% to 30% increase in 2010 ore prices.
While implicitly acknowledging that a price rise might be inevitable, the Chinese have signaled a far smaller appetite for a hike. In remarks at an industry conference earlier this month, Mr Luo said the upside for iron ore prices is small and difficult, without ruling out a price increase.
But his public response marks China's continued determination to seize price setting control.
China's relations with foreign miners, especially Rio and BHP, have become increasingly frosty after price talks fell apart in July when the Chinese government arrested four Rio Tinto employees on charges of commercial spying and bribery. The China Iron and Steel Association stepped up the attack against Rio and BHP in mid December, calling the companies' proposed iron ore joint venture a threat to the global steel market and trying to rally international opposition to the deal.
But in his remarks to the China Securities Journal, Mr Luo appeared to leave wriggle room to accommodate a price hike, acknowledging all global resources, including iron ore, are currently in a situation of price increases.