China steel body plans iron ore price guidance-paper

SHANGHAI, Aug 13 (Reuters) - The China Iron and Steel Association (CISA) is preparing to set up a system of price guidance for imported iron ore, the Beijing Daily reported on Thursday, citing CISA Secretary-General Shan Shanghua.

CISA, the country's industry group and sole representative in annual iron ore term price talks, will take a broad range of factors into account, including iron ore output, steel mills' profitability and production costs, when setting its price guidance, Shan was quoted as saying.

CISA could not immediately be reached for comment.

"The confirmed guide price will be a base price for a national unified price for importing iron ore," Shan told the newspaper, adding that the price guidance system would include conversion formulas to determine prices of difference grades of ore.

CISA is still seeking a price cut of more than 33 percent in protracted contract price talks with foreign miners Rio Tinto (RIO.AX)(RIO.L), BHP Billiton (BHP.AX) and Vale (VALE5.SA), although analysts have said it was unlikely to succeed. (Reporting by Alfred Cang and Edmund Klamann)