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By Luciana Magalhaes

SAO PAULO, June 18 (Reuters) - Brazilian steelmaker CSN's CSNA3.SA sale of its cement unit is entering the final stretch, though a higher-than-expected asking price is meeting resistance from potential bidders, three people close to the process said.

CSN unveiled a major divestment plan this year centered on the sale of its cement division and of a potential minority stake in its infrastructure business, as the Brazilian steelmaker seeks to cut debt.

As the August 7 deadline for binding offers on the cement unit approaches, however, the distance between the company and the bidders on pricing expectations has come into focus.

CSN, one of Latin America's largest steelmakers, is seeking between 13 billion and 14 billion reais ($2.5-2.7 billion) for the cement unit, above the range of 10 billion to 12 billion reais that several bidders had anticipated, the sources said.

CSN said in a statement on Thursday that binding proposals for the cement unit are expected to be received in the first half of August, setting up negotiations to sign a contract by September.

CSN added that it does not comment on specific participants in the due diligence process, but said the group of possible bidders is diverse and brings together relevant players from Brazil, Asia and Europe.

The steelmaker also said that, as announced this year, the divestment program is linked with a plan to deleverage its debt, with the potential to generate between 15 billion and 18 billion reais, considering all ongoing transactions.

CSN first launched the sale process for its cement unit with the help of investment bank Morgan Stanley and is now also moving ahead with the divestiture of the infrastructure stake in a process led by Bradesco BBI and Citigroup.

CHINESE INTEREST WANES

The path to closing those deals, however, may not be straightforward.

Among Chinese companies that had been eyeing CSN's cement unit, at least one, Anhui Conch Cement 600585.SS, is no longer seen as a likely participant in the process, the three sources said.

"The Chinese groups are having difficulties with the price," one of the people said.

Anhui Conch did not respond to a request for comment.

Huaxin Cement 600801.SS and Sinoma International 600970.SS were also in talks with CSN, but whether they will follow through to the binding offer stage remains unknown, the sources added.

Two of the sources said that a major Huaxin shareholder is resisting moving to the next phase. However, a third source said the Chinese company continues its due diligence on the cement producer and may still make an offer.

Huaxin and Sinoma did not respond to requests for comment. Morgan Stanley declined to comment.

Among the Brazilian companies, Votorantim and Polimix Concreto are still in the due diligence process, although it remains unclear whether either will submit binding offers, the sources said.

Votorantim declined to comment. Polimix did not respond to a request for comment.

One of the sources added that five potential bidders remain interested in buying the cement unit.

Earlier this year, Reuters reported that J&F, the conglomerate controlling meatpacker JBS Z98.F, had lost early interest in acquiring CSN's cement unit and was only willing to invest around 10 billion reais in the deal.

INFRASTRUCTURE MINORITY STAKE

According to sources with knowledge of the transaction, the minority stake sale in the infrastructure division will feature assets located in Southeast Brazil spanning railways, port terminals and logistics operations.

The same sources said the divestments are expected to fetch between 5 billion and 6 billion reais. One of the sources added that non-binding offers for CSN's infrastructure stake could come at the end of July.

CSN said in its Thursday statement that it is not selling infrastructure assets, but rather evaluating a potential process for the sale of a minority stake in the CSN Group's infrastructure holding company.

Bradesco and Citi declined to comment.

($1 = 5.1762 reais)