Baosteel Group, China's biggest steel maker, and its competitors may have to limit domestic prices of iron ore sold from their inventories, said two people familiar with the situation.

The China Iron and Steel Association proposed that mills should only charge a 3-to-5-percent premium for reselling imported contract iron ore, said the people, who declined to be identified because the information is private. They will not be allowed to sell iron ore at higher spot prices, the people said.

(Shanghai Daily January 16, 2009)