"The Chinese government has made it emphatically clear that the (price) negotiations on iron ore will be commercial negotiations between the steel mills and the suppliers," Macfarlane said.

China plans to meet its growing energy demand with a fourfold increase in nuclear production by 2020.

Wen, who arrived Saturday for the first visit to Australia by a Chinese premier in 18 years, is also expected to discuss with Howard a free trade agreement which is under negotiation.

The premier is to stop in Fiji on April 5 for an economic forum between China and the Pacific Islands before heading to New Zealand. He is to wrap up his trip on April 8 in Cambodia.