Thursday, June 26, 2008

China Considers Boycott Of BHP Iron Ore

Chinese government and steel industry officials are considering a boycott of iron ore imports from BHP Billiton to apply pressure on the Anglo-Australian miner not to raise prices too much, according to a newspaper report on Thursday. BHP is seeking more for its iron ore than the almost 100% increase mainland steelmakers agreed to pay its rival Rio Tinto the South China Morning Post reported.

It cited an unnamed Chinese official as saying that an agreement with BHP may be reached next week, but any move by the miner to link long-term contract prices of iron ore to higher spot prices would be rejected. Separately, Marcus Randolph, chief executive for ferrous and coal at BHP, said the company wasn't being paid "the same price as somebody else is for their similar product delivered to China," the report added.

Source: Marketwatch

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