The annual battle to settle iron ore prices appears headed toward deadlock, but exchanges are quietly looking at developing contracts that could change the way the industry sets prices.

Analysts tipped the Singapore Exchange as most likely to be the first to carry an over-the-counter iron ore contract, which would create a more transparent pricing mechanism for the more than $200 billion industry and let some of the heat out of what some see as over-inflated spot prices.

"The dynamics in the iron ore market is changing from one dominated by long-term supply contracts, to the point today where rampant demand has created a viable spot market," ANZ's senior commodities analyst Mark Pervan said.