http://www.marketwatch.com/story/china-reportedly-to-give-in-on-iron-ore-pricing By John Letzing, MarketWatch SAN FRANCISCO (MarketWatch) -- The China Iron & Steel Association has backed down from its hard line on iron-ore prices and is prepared to discuss a less-than-hoped-for 33% reduction on benchmark ore this year, according to reports Thursday. Last month, Australian iron ore exporter Rio Tinto Plc. /quotes/comstock/13*!rtp/quotes/nls/rtp (RTP 166.98, +3.00, +1.83%) and Japan's Nippon Steel /quotes/comstock/!5401 (JP:5401 366.00, -4.00, -1.08%) had established a deal cutting iron ore prices by 33%, effectively establishing a benchmark. But Chinese steel mills including Baoshan Iron & Steel /quotes/comstock/28c!e:600019 (CN:600019 7.28, -0.07, -0.95%) resisted, instead aiming for price reductions of 40% or more. See full story on China steel mills' iron-ore negotiations. CISA, a group that includes the country's major steel mills, had also initially resisted the price cut, demanding cuts of 40% to 45%, according to a report in the Australian. However, "Rising demand for imported iron ore in China has undermined CISA's efforts to strike a hard bargain," the Australian reported. CISA represents the 72 main steelmakers in the country, who together account for up to 75% of Chinese production. Steel makers have been touchy about price cuts, after negotiations last year resulted in a more than doubling of prices just before global demand collapsed. John Letzing is a MarketWatch reporter based in San Francisco. When the sale of Australlian minning companies were refused, the Aus goverment knew the chinese would have no choice but to accept the outcome? I would have expected them to collasp under pressure of china?