Baosteel to pay almost twice for ore

China's largest steel-maker, Baosteel, yesterday agreed to pay up to 96.5 percent more for the iron ore it will import this year from Australian miner Rio Tinto. In February, Baosteel had agreed to pay 65 percent more to Brazilian miners.

Analysts say the huge increase would raise the production cost of Baosteel. Baosteel agreed to pay 79.88 percent more to PilbaraI Blend Fines and Hiy Fines, and 96.5 percent more to Pilbara Blend Lump for their supplies in 2008-09.