China steelmakers working on lower ore price-executive

* China steelmakers looking for lower ore prices in talks

* China steel production set to remain high in July

* Annual production could hit 500 million tonnes (For related stories click on [ID:nSP480484])

BEIJING, July 4 (Reuters) - China's steel industry body is still looking for a lower iron ore price in negotiations with key suppliers, the president of Baosteel (600019.SS: Quote, Profile, Research) said on Saturday, adding that national output was running high in July.

Xu Lejiang of Baosteel, one of China's dominant steelmakers, was tightlipped with reporters about the tense negotiations over ore prices. But he said the China Iron & Steel Association (CISA) was still working on a lower price for the nation's steelmakers.

"CISA is still working on a lower iron ore price," Xu told reporters on the sidelines of a meeting.

He also said that China's steel production in July looked set to remain at the high levels in reached in June, and national production for all 2009 could reach 500 million tonnes.

"July is still high, just like June, because steel demand from construction is strong, and also this is the high season for steel demand," he said.

Demand from building projects and vehicle makers was shoring up the nation's appetite for steel, he said.