China is reducing iron ore imports as suppliers raise prices – which is harming long-term co-operation, according to the Ministry of Commerce. Steelmakers such as Baosteel Group are in annual talks with suppliers over prices after last year’s record high ate into profits. Demand for the commodity is soaring in China, producer of a third of the world’s steel. China imports 44% of world seaborne iron ore shipments, but prices rocketed 71.5% last year because of rising demand. Mining firms including Companhia Vale do Rio Doce, BHP Billiton and Rio Tinto Group want prices to rise yet further this year.