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Chinese metallurgists outraged by rising Australian ore prices and demand an explanation from BHP

Australia / Asia

Representatives of the Chinese steel industry demanded an explanation from BHP about the rise in iron ore prices.

Chinese metallurgists outraged by rising Australian ore prices and demand an explanation from BHP

The China Iron and Steel Industry Association (CISA) said it had a "showdown" with BHP on Thursday on the rise in iron ore prices. According to the Chinese media, in fact, the association demanded an explanation from the Anglo-Australian mining company about the sharp rise in prices for iron ore, which rose by almost $ 8 over the day and reached an incredible $ 158 per ton of ore with a content of 62% iron. </P >

"The current price of iron ore has become abnormal," the media quoted Li Xinchuan, president of the China Institute for Planning and Research of the Metallurgical Industry, who is also the deputy head of CISA. “How can it grow so fast in such a short time? This has created a huge bubble and seriously threatens our industrial safety, ”he asks.

The spike in imported iron ore prices threatens the profitability of steel mills in China, which buy nearly 90 percent of their needs overseas.

BHP has agreed to strengthen its engagement with the Chinese association to ensure an "open and transparent iron ore market," at least as stated by BHP VP of Marketing and Sales Rod Ducino and Head of Iron Ore Sales Rohan Roberts. p>

BHP officials also assured the Chinese side that ore supplies will remain stable despite the worsening weather, and production in the fiscal year, which began in July, will be stable and will reach the upper limit of the planned 276-286 million tons.

Recall that relations between Beijing and Canberra have been gradually deteriorating lately and increasingly resemble the beginning of a trade war. As we have already reported China has restricted imports of Australian coal and some other commodities, but cannot afford to restrict purchases of iron ore.

"In the long term, dependence on Australian ores will not change," said Li Xinchuang. “We are interdependent. If the fights continue, you will have to pay your price. ”

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