China steel industry opposes Rio-BHP joint venture
China's steel industry group announced to opposes a proposed venture between leading iron ore producers BHP Billiton and Rio Tinto as a monopolistic move.Rio Tinto Group PLC and BHP Billiton Ltd. said they would combine their iron ore assets in Western Australia state.
The same day, Rio Tinto called off a planned US$19.5 billion investment in the company by Aluminum Corp. of China (Chinalco).China imports nearly all of its iron ore.
Producers are sensitive to any move that might give suppliers more power in setting prices after Chinese mills were forced in recent years to accept sharp increases in ore costs.
China think this kind of joint venture agreement has a strong monopolistic color.
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