The monopoly in iron ore pricing is damaging China's economy and should be opposed, a senior research fellow at a Chinese state research center said Tuesday.
"There is a monopoly in pricing and price is not decided by supply and demand," Hu Jiangyun said at a United Nations forum here.
The monopoly in iron ore pricing is damaging
China
's
economy and should be opposed, a senior research fellow at a Chinese state
research center said Tuesday.
"There is a monopoly in pricing and price is not decided by supply and
demand," Hu Jiangyun said at a United Nations forum here.
BHP Billiton Ltd. (BHP), Rio Tinto PLC (RTP) and
Brazil
's
Vale SA (VALE, VALE5.BR) dominate the supply of iron ore to Chinese
steelmakers.
Hu said iron ore prices in
China
are
above $100 a metric ton, double the level seen in 2002.
Hu said that Chinese steel makers and other iron ore consumers in the country
lost 700 billion yuan ($102 billion) over six years due to the high price of
the material. He blamed the monopoly on pricing held by Rio Tinto, Vale and
BHP.
"As an emerging economy
China
suffers a lot--it bears the high cost of iron ore and there needs to be better
co-ordination in pricing markets," he said.
He said unsound pricing policies would have a large impact on the global
economy as
China
is an
engine of growth.
"We hope the price will be kept stable and unreasonable market
transactions should be opposed," Hu said.
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