Rio Tinto last night slammed Chinese steelmakers over increasingly aggressive negotiating tactics, after the China Iron & Steel Association called for its members to boycott the Anglo-Australian mining group's spot sales of iron ore. The steelmakers have failed to agree a 2008-09 annual contract price with Rio and BHP Billiton despite months of talks. Earlier this year, the Chinese authorities delayed issuing permits needed to import some shipments of Australian iron ore, a move that was also considered a negotiating ploy.

The death toll from Monday's earthquake in China could reach as high as 50,000 people, the state council said last night, as rescue workers still struggled to reach some of the worst affected areas. The number of deaths announced so far rose yesterday to 19,500 in Sichuan province, the centre of the earthquake. However the sharp escalation in the expected death toll indicates that hopes are fading for the tens of thousands of people who are still buried under collapsed buildings.