Rio talks with China may slide

The world&rsquo;s largest buyer of iron ore, China, might allow price talks on the metal with Rio Tinto to drop, the Umetal Research Institute said yesterday.<br />The news comes ahead of the mining group&rsquo;s second quarter production volumes report, which is due out today. <br />The mining giant has agreed a 33 per cent price cut with steelmakers in Japan and Korea, but the China Iron and Steel Association, which is leading the talks, had been pushing for a bigger cut in China.