MAR. 15 5:53 A.M. ET China's government on Wednesday expressed concern at soaring iron prices and warned that it would take unspecified measures to protect its steel makers if talks with foreign suppliers of iron ore fail to produce reasonable prices.

China's iron ore imports from Australia, Brazil and other producers have risen 37 percent over the past year amid high demand for steel for manufacturing and building.

Prices have jumped 71.5 percent during the same period.

"The government will pay close attention to iron ore price talks and take necessary measures if prices are unacceptable and unreasonable," the Ministry of Commerce said in a statement on the government's main Web site.

Chinese buyers are in the midst of price talks with leading suppliers BHP Billiton Ltd. and Rio Tinto Group of Australia and Brazil's Companhia Vale do Rio Doce.

The Commerce Ministry didn't say what it might do. But the official newspaper China Business News said Wednesday that Beijing was considering reducing the number of companies licensed to import iron ore in order to tighten its control over the market.

In Australia, Resources Minister Ian Macfarlane earlier expressed alarm at reports that China was considering trying to cap prices of iron ore imports.

"There is no place for price caps in a commercial market," Macfarlane said.

China imported 51.5 metric tons of iron ore in January and February, according to Customs data released Wednesday.