By George Lauriat, AJOTThe CISA (China Iron and Steel Association) is in a bind. It’s trying to convince China’s host of smaller traders and mills to stop buying iron ore on the spot market during the negotiations with the big three foreign providers Rio Tinto, BHP Billiton and Vale. The CISA and China’s Ministry of Industry have threatened crackdowns but the surge iron ore imports, has continued unabated. CISA is seeking significant price cuts in the long-term contracts with the three suppliers. According to published reports the CISA is seeking larger price reductions than the 33% cut agreed to in July with Japanese and Korean steel mills. Analysts familiar with the negotiation say China wants a 40% price cut. Currently, the spot market accounts for almost 83% of China’s iron ore purchases. The negotiations have been usually heated. In July, four members of Rio Tinto’s Shanghai office, including Chinese born Australian, executive Stern Hu were arrested for bribery and spying. The arrests have strained relations between Australia and China and put Australian Prime Minister Kevin Rudd in a bind. Prime Minister Rudd is a Mandarin speaker and has said that he has special ties to China.