The Vice President of the China Iron & Steel Association (CISA) and the heads of more than 10 Chinese steelmakers has written a joint letter to Premier Wen Jiabao asking him to take up the issue of rising iron ore import prices at a national level, the China Securities Journal reported quoting sources.
The companies included Baosteel, Wuhan Iron & Steel, Anshan Iron & Steel and Hebei Iron & Steel, it said.
China's steel sector, which produced almost half the world's steel in 2009, faces a huge increase in iron ore costs this year. China's own iron ore output cannot meet domestic producers' needs so they depend on imports.
The mills have long used a system of negotiating annual benchmark prices with the top global iron ore suppliers Vale, Rio Tinto and BHP Billiton.
But last year China failed to clinch an agreement after CISA, which was leading the negotiations, demanded a cut of 40-50 percent. Chinese mills used an interim price cut of 33 percent instead, based on deals done in Japan and South Korea.
This year, spot market prices for iron ore have soared above US$130 per ton, double the 2009-10 contract price, spurred by strong demand from Chinese steelmakers and global strength in commodities markets.
CISA had begun the year hoping for a price rise of about 20 percent. CISA's secretary general said that he expected iron ore oversupply in 2010.
The Chairman of Hebei Iron & Steel said that many mills were now abandoning the traditional annual contracts that run from April 1 in favour of deals starting on January 1, and he saw the old system changing this year.
Vale, the top miner, has proposed quarterly pricing to some Japanese mills this year. It has already told some Chinese mills it plans to drop the benchmark, an analyst said.
All three big miners have now put annual pricing talks with China on hold.
By ditching annual pricing deals, the miners may be banking on a global economic recovery pushing up demand for steel this year, which could keep spot prices of iron ore on the rise.
China's own steel production hit a record 1.80 million tons per day in February, weakening the mills' case in price negotiations.
But some analysts have warned of large stockpiles of steel products in China, which could soften the impact of a demand recovery. China also has 71 million tons of iron ore stocked up at its ports, more than a month's worth of imports.

The China Iron and Steel Association (CISA) strongly opposes the attempt by foreign miners to increase benchmark iron ore prices by 80-90 percent in 2010, it said in a statement.
"On March 11, Eurofer (the European Steel Industry Association) made a statement on its website strongly opposing the intention of iron ore producers to raise prices by 80-90 percent," the statement said.
"The China Iron and Steel Association expresses its approval and support for this statement," it said.
Eurofer said last week it was 'outraged' by such increases, which it said would hurt Europe's economic recovery.
Last year, CISA led China's benchmark price negotiations with Brazil's Vale and Rio Tinto and BHP Billiton of Australia, but its effort to win concessions from the three mining giants failed, and this year it has been replaced by Baosteel.
But Baosteel has signalled its reluctance to take the lead, joining CISA and 10 other Chinese steel mills in a plea to the government to intervene on their behalf in the talks, which are scheduled to end on April 1.
CISA said at the end of last year that it expected the three big miners to demand a 20 percent increase in benchmark prices in 2010, but major steel firms ackowledge that the figure is going to be significantly higher than that.

Wuhan Iron & Steel (Group) Corp, the parent of Shanghai-listed Wuhan Iron and Steel Co Ltd recently spent US$400 million for 101.7 million new shares of MMX, a subsidiary of Brazil-based EBX Group.
The stake acquisition gives Wuhan Iron and Steel Co, one of the leading steelmakers in China, a 21.52 percent stake in MMX's enlarged capital, making it the second-largest shareholder of the Brazilian company.
Reportedly, Wuhan Iron and Steel signed an agreement with EBX Group on cooperation on mining and steel projects.
MMX currently has an annual capacity of 10.7 million tons of iron ore. The establishment of the cooperation with EBX is expected to help the Chinese steelmaker ensure a long-term supply of iron ore.

China's Ministry of Industry and Information Technology (MIIT) warned that China's soaring demand for iron ore is causing a greater reliance on imports. Last year, China purchased nearly 70 percent of its iron ore overseas, a 13 percent increase from 2008, and the import share of world iron ore trade has amounted to 75 percent.
Currently, imported iron ore prices have spiked and continue to trend upward. One of the three major international iron ore suppliers, Vale of Brazil, proposed to increase ore prices 80 to 90 percent, saying that it has no intention of signing more long-term contracts, and it is in favor of promoting the sales of stock of iron ore.
MIIT said the risk of supporting the development of iron and steel with large amounts of iron ore is growing. At the same time, the problem of overcapacity in the iron and steel industry is becoming more and more serious. Last year, China's steel production capacity reached more than 700 million tons, while the domestic market apparent consumption of crude steel was only 565 million tons. About 30 million tons went into stock, so the actual consumption was less than 530 million tons.
Production capacity is also expanding. Last year, the fixed-investment growth rate of the steel industry remained at around 20 percent.

Anglo-Australian metal digger Rio Tinto sealed a vital deal with China to jointly develop a vast iron ore reserve in Africa.
Rio will join forces with Beijing controlled Chinalco to exploit a deposit in Guinea, in West Africa.
The deal suggests Rio is beginning to repair its fractured relationship with China, which foundered after it scrapped a proposed alliance with aluminium firm Chinalco last year. Four of Rio's executives are due to go on trial in Shanghai on allegations of giving and receiving bribes and illegally obtaining commercial secrets. Rio has protested their innocence.
Under the accord, Rio will end up owning 50.35 percent of the venture and Chinalco 44.65 percent, the statement said.
The Chinese will make a 900 million pound contribution to fund development of the deposit, which requires hefty spend on rail and port infrastructure.
Rio chief Tom Albanese said: "We have long believed that Rio Tinto and Chinalco could work together on major projects for mutual benefit."