Iron ore negotiations between Chinese steel mills and suppliers may conclude in around 10 days, said Li Xiaowei, vice chairman of the China Iron and Steel Association, which has been spearheading the talks for the Chinese side.

"You will see an outcome (from the negotiations) in around 10 days," Li told reporters on the sidelines of a local investment forum. "It's impossible for China to accept the 33% price (cut)."

"Supply and demand rely on each other like teeth and lips. Those who only chase monopoly and windfalls will eventually lose more," Li added.

Li is also chairman of Hunan Valin Iron & Steel Group, which owns just over 17% in Fortescue Metals Group Ltd. (FMG.AU), making it the Australian miner's second-largest shareholder.

Li said China's annual iron ore demand of 450 million metric tons means it should be deciding what price is right for the raw material.

Companies should seek a "China price" and a "China mechanism," Li said, indicating China wants to set its own mechanism for global iron ore prices.

The 2009-10 contract year iron ore negotiations between Chinese mills and the world's top ore suppliers Rio Tinto PLC (RTP), BHP Billiton Ltd. (BHP) and Vale S.A. (VALE) have been particularly tortuous this year as both sides have refused to back down on the extent of price cuts.

Already, some Chinese steel mills have agreed to provisional prices for iron ore until a final price is set. As several key buyers adopted a 33% discounted price as the provisional price, it was seen to indicate Chinese steel mills expect it will be the final price to emerge from current talks between government-linked negotiators and major mining companies.

On Hunan Valin's outlook, Li said the company doesn't have another overseas merger and acquisition target after it completed its equity acquisition in Fortescue earlier this year.

He added Valin will cut its financial cost by at least CNY200 million this year and its profit may reach its highest level for this year yet in August, but didn't provide any figures.

-Victoria Ruan contributed to this story, Dow Jones Newswires; 8610 6588-5848; victoria.ruan@dowjones.com