China’s steel industry has called on the government to intervene in the iron ore market pointing to the “failed” market pricing.
In a statement from the China Iron & Steel Association (CISA) reported by the South China Morning Post, the industry body asked for two of the country’s regulators to look at the cause of the price rises, which ended last week at fresh seven-year highs.
The iron ore market pricing mechanism has failed and steel companies unanimously call on the State Administration for Market Supervision and the China Securities Regulatory Commission to take effective measures and crack down on possible violations of regulations, CISA is reported to have said in a statement.
BHP is also reported to have met with CISA on Thursday last week to discuss the industry group’s concerns about pricing, which CISA said included a “candid exchange of views”.
The price of iron ore climbed $US3.55 to $US160.13 per tonne (62 per cent Fe fines, cfr Qingdao) at the end of last week, according to Metal Bulletin, leaving the steel-making ingredient higher than its been in more than seven years.
Investors and exporters remain on edge as the breadth of economic penalties on Australian goods sold into China expands amid tensions between governments in the two countries.
China’s steel industry has called for government to intervene due to the high iron ore prices, according to the South China Morning Post.
