The major Iron Ore producers of the world Rio Tinto and BHP Billiton have indicated to the world’s largest Iron ore consuming country China, that they must be ready for a steep hike in the prices for the coming year. Most of the Chinese steel makers annual contracts with these suppliers ends in June 2008. Few others have the annual contracts ending in subsequent months. Now these two major suppliers have threatened to stop further supplies from July 2008 if new prices are not finalized and signed by the Chinese companies.