China on Monday signalled a softer stance in its protracted iron ore negotiations with global miners, when it announced a face-saving deal with Australian miner Fortescue Metal.

Fortescue has agreed to cut its iron ore prices by 35 per cent from last year’s levels – less than the 45 per cent cut that China has been seeking from its traditional iron ore suppliers. Those miners – Vale of Brazil, Rio Tinto and BHP Billiton – have already agreed to cut prices by 33 per cent for steel mills in Japan, Taiwan and South Korea and have resisted Beijing’s calls for deeper cuts.