The world’s No.2 and No.3 iron ore suppliers, Rio Tinto and BHP Billiton, have asked Japan’s steel makers to raise ore prices for the July-September quarter by 22-23 per cent from the previous quarter.

“Steel mills have continued halting buying of imported iron ore, though their inventories are not high,” said an iron ore trader in Beijing.

Traders in China said while ore stocks with steel firms had fallen, port stocks remained high, which would keep the prices under pressure until a clear picture emerged on the quarterly price negotiations between big iron ore suppliers and steel makers.

Spot iron ore prices have fallen by more than a quarter from the record of about $200 a tonne in late April.

In India—the third-largest supplier of iron ore to China—a sign of a recovery was visible in an export deal of 60,000 tonnes to China this week. “Prices rose $1-$2 this week despite weak fundamentals,” said a dealer in a Delhi-based trading company. On Thursday, Chinese consultant Mysteel said Indian origin ores with 63.5 per cent iron content were quoting $152-$154 a tonne with freight, up 1.3 per cent from last week’s $150-$152.

Spot iron ore from The Steel Index of 62 grade, was at $147.7 a tonne on Wednesday, down $1.9 from the previous day, but $2.3 higher than last week.