It has been reported that the iron ore price talks between Chinese steelmakers and Anglo-Australian mining groups BHP Billiton and Rio Tinto have hit a deadlock over the issue of freight rates.
The main issue of disagreement between the steelmakers and the Australian iron ore suppliers is the desire of the latter to add a transportation cost to the 65 percent increase already agreed on for the 2008 iron ore prices.
According to industry reports, negotiations are continuing between the mining giants and China's largest steel producer Baosteel.