BEIJING (Commodity Online): Unlike last year when the iron ore price talks collapse din China resulting in major chaos in the steel sector, this year China’s main steel mills started talks in Singapore with the big three global miners on 2010 contract iron ore prices.

According to media reports in China, delegations from Baosteel, Wuhan Iron and Steel and others were already in Singapore to hold discussions with BHP Billiton, Rio Tinto and Brazil’s Vale.

Last year’s iron ore talks failed with Chinese steel firms eventually forced to accept the interim benchmark price agreed by Rio Tinto with Japanese mills.

Baosteel and the other big mills were under commercial pressure to sign an agreement as quickly as possible but under political pressure to hold out for a better deal.

Spot iron ore prices in China are at $120.50 a tonne, according to the Steel Index, down from a peak of $131.20 last month but double the lows in March last year.

Baosteel and Rio Tinto have both appointed new chief negotiators for 2010, as they look to repair the damage done not only by last year’s price talks, but also by the arrest of four Rio Tinto staff members in Shanghai on charges of industrial espionage.

Relations between China and Rio Tinto are so poor at the moment. Both sides have got new negotiators, but it takes more than that.

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