China Iron and Steel Association officials said Tuesday that iron ore negotiations were ongoing, despite a domestic media report saying the association had suspended term price talks with Australian miners Rio Tinto Plc (RTP) and BHP Billiton Ltd. (BHP).

A China News Service report Tuesday said the association halted talks because iron ore spot prices have been "seriously distorted."

"The talks have been suspended to avoid unreasonable disturbance" to the market, the report said, citing a statement issued by the association.

However, no such statement could be found on the association's Web site.

Reached by Dow Jones Newswires, two CISA officials who declined to be named said talks were ongoing and that they never issued such a statement.

The association, leading Chinese steel mills, is in the midst of a protracted standoff with miners Rio Tinto, BHP and Brazilian miner Vale S.A. (VALE).

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