CHINESE ASS'N DENIES RUMOURS OF "CEILING" IN IRON ORE TALKS.

BEIJING, Feb 1 Asia Pulse - The China Iron and Steel Association has denied market rumour that it has set a 30 per cent ceiling price rise in talks with iron ore suppliers, according to a report in Thursday's China Securities Journal.

Association vice chairman Luo Bingsheng said the rumors were not helping negotiations for 2008 iron ore imports, the paper reported.

According to speculation, the world's three major iron ore providers, BHP Billiton (ASX:BHP), Rio Tinto (ASX:RIO) and CVRD, want to raise prices by least 50 per cent.

"There is not such ceiling on the Chinese side, and such pre-determined ceilings cannot facilitate the process of the negotiation," said Luo, adding the association would pay close attention to how the negotiations could benefit the Chinese iron and steel industry's development.

China, the world's largest steel producer and consumer, imported 383 million tons of iron ore in 2007, up 57 million tons or 17.4 per cent year on year, according to statistics from China Customs.

Luo predicted that imports this year would rise by 40 million tons.

"Domestic demand growth for pig iron will probably drop from 14.11 per cent in the second half of 2007 to 12 per cent in 2008 ...