Thursday, April 15, 2010

CISA Chief Blasts Miners' Dictatorial Attitude

Luo Accuses Miners of "High Degree Of Monopoly"



The chairman of the China Iron and Steel Association has blasted iron ore miners for their attitude towards their Chinese customers.

Speaking at an industry conference, Luo Bingsheng said that the miners are no longer negotiating but dictating prices to their customers.

"There are no negotiations any more," Mr Luo said "now it's 'I say the price, you must accept, or else we will stop supplying you.'"

Mr Luo accused miners Vale, BHP Billiton and Rio Tinto of "a high degree of monopoly" in the supply of seaborne iron ore.

He added that while steel prices have risen sharply the domestic steel industry still faced the challenges of global protectionism, sharply higher inventory levels and slow consolidation in the industry.


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