Saturday, April 3, 2010

China Calls For Big Three Iron Ore Boycott

CISA Urges Importers To Observe Two Month Boycott



A report from China suggests that the China Iron and Steel Association has asked domestic steel companies and importers to stop buying iron ore from Vale S.A, BHP Billiton Ltd. and Rio Tinto PLC for the next two months. The report, in the state-run newspaper, the Shanghai Securities Times, says that CISA has made the request in protest against what it sees as a price monopoly by the world’s three biggest iron ore miners.

China’s iron ore stocks currently stand at 75 million tonnes, enough for two months’ production, the newspaper said, citing CISA Secretary-General Shan Shanghua.

The newspaper also reported that they boycott is aimed at what it describes as "unreasonable requests for price hikes" from the global iron ore producers' and their move to a quarterly pricing system.

CISA met with steel mills on Friday to discuss strategy over the ongoing iron ore talks.

Click here for an archive of articles on the 2010 iron ore benchmark talks


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