China would rather give up on annual negotiations for iron ore pricing contracts than accept the 33-percent cut proposed by global miners, a key official with the steel industry lobby said yesterday, even as he confirmed that the latest round of talks would see some progress within the next 10 days.

"CISA has put the foot down and will not compromise on its stance. You will see the result in around 10 days," Li Xiaowei, vice-chairman of the China Iron and Steel Association (CISA) and chairman of the State-owned Hunan Valin Iron & Steel Group, said.

"We will ask for a better rate, otherwise we would rather give up on the annual negotiations for iron ore pricing," he told China Daily at an Australia-China investment forum.

"Supply and demand rely on each other like teeth and lips. Those who only chase monopoly and windfalls will eventually lose more," Dow Jones also quoted Li as telling reporters on the sidelines of the forum.

China, as the world's largest iron ore buyer, needed 450 million tons of iron ore annually, and should have the right to decide its price, he said.

Chinese media reported earlier that some major steel mills, including Baosteel and Hebei Iron and Steel Group, had agreed with Rio Tinto and BHP Billiton on a 33-percent cut in iron ore prices.

Li Qingyu, general manager of Baosteel Resources Co, said he was not informed about the deal, adding iron ore supply exceeded current demand.

CISA rejected a 33-percent price reduction that Japanese and South Korean mills agreed to in May, and held out for a 40-percent cut.