Heat Treat Industry News

April 23, 2010

China to investigate iron ore pricing

Publishing Date16 Apr 2010 3:29pm GMTAuthorMining JournalChina, the world’s largest consumer of iron ore, said it is investigating the possibility that the world’s three largest producers of iron ore may be monopolising control over pricing of the steel-making material.

Ministry spokesman Yao Jian said at a press conference: "The commerce ministry’s anti-trust bureau is currently studying the issue."

In recent weeks, Vale SA, Rio Tinto and BHP Billiton have announced a move from the traditional annual iron-ore agreements to shorter-term contracts, prompting vocal concerns from Chinese steel-makers.

The Chinese detractors join steelmakers elsewhere who have also commented about the pricing control of the three mining companies.

Eurofer, the European Confederation of Iron and Steel Industries, last month notified the European Commission about possible anti-competitive practices and abuse of dominant position by the main suppliers.

The World Steel Association (WSA) has also weighed into the debate, saying there is an urgent need for competition authorities to examine the market.

WSA director general Ian Christmas said earlier this month that authorities must review "the market behaviour of the three companies that dominate the business. They need to decide whether the uncompetitive nature of this business is in the public interest given that is used in virtually every aspect of the modern economy."

BHPB and Rio Tinto are also currently under review by various regulatory bodies, including the European Commission, for their proposed iron-ore joint venture in the Pilbara region of Western Australia.

Source: Mining Journal

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