A top Chinese steel industry official on Tuesday backed away from earlier comments he made that a 30%-35% cut in this year's iron ore term prices would be regarded as too shallow, suggesting a change in the Chinese position.

"That was what I had said before, but now I no longer am saying that," said Shan Shanghua, secretary-general of the China Iron and Steel Association, referring to comments he made to a newspaper last week that China wouldn't accept a 30%-35% cut.

In comments to the Southern Daily newspaper published last week, Shan repeated a long-held Chinese position by depicting a cut of such a magnitude as too small.

"Even if Korean and Japanese steel mills accept 30%-35% cuts, the Chinese side will not go with the flow," he had said, according to the report. "Even if the Korean and Japanese mills are willing to accept smaller cuts, China is the world's largest consumer of iron ore, and should get the largest cut."

Shan's comments come as expectations are rising among industry watchers that a deal may be set soon between Chinese steel mills and global miners BHP Billiton Ltd. (BHP), Rio Tinto PLC (RTP) and Companhia Vale do Rio Doce (RIO).

-By Chuin-Wei Yap, Dow Jones Newswires; 8610 6588 5848; chuin-wei.yap@dowjones.com