The China Iron and Steel Association (CISA) is leading new talks with iron ore suppliers after previous negotiations left steel makers without contracts, the Wall Street Journal reported. After pushing for aggressive price cuts in failed talks earlier this year, CISA officials indicated there would now be a "small and difficult" chance of agreeing to higher prices from suppliers, though price rises of 30-35% were "not reasonable," CISA officials said. Amid rising steel production, and without contracts for ore, China’s steel mills have resorted to buying raw materials from the spot market at high prices. An appreciating Australian dollar is expected to make iron ore producers Rio Tinto and BHP Billiton less open to negotiating since iron ore is priced in US dollars, which hit a 15-month low last week.