Chinese steel mills have reached an iron ore agreement with BHP Billiton Ltd/Plc in line with the near-doubling of prices won by rival Rio Tinto Ltd/Plc, Chinese industry sources said.

Confirming a report in the Australian Financial Review, the industry sources in Beijing said the mills had reached an accord with BHP on Thursday.

It had taken time to study the deal, which initially was hammered out between Baosteel and Rio, they said.

Baosteel said last month it had agreed to pay up to 96.5 percent more for its iron ore under a term contract with Australian miner Rio.