Industry insiders believed that iron ore market must stay competitive.
World Steel Association appealed competitive administration organizations to fully examine the joint venture enterprises of BHP Billiton and Rio Tinto.
Ian Christmas, general secretary of WSA representing global steel makers said that “the binding agreement signed by Rio Tinto and BHP Billiton recently much differs from the proposal raised in early this year. It has main risks in restraining competition and its controlling position in the world’s seaborne ore market will become more unfair than the existing unsatisfactory state. The JV will make three-giant monopoly be duopoly”.
He unveiled that “the competition made market stronger and brought efficiency. The competition between steel enterprises has led global steel market to be healthier and brought benefit for steel consumers, therefore, it has promoted steel consumption to rise overall”, adding “we believe that the JV enterprise may seriously damage the market, so we called for all relevant competitive and administration regulators to make a serious examination”.
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