China Tells

China’s Steel Industry is still fighting hard against the potential merging between Rio Tinto and BHP (See Article from WSJ). China is the world’s biggest iron ore importing country, acounting for more than half of the total tradable volume. Unfortunately the world supply of iron ore is concentrated in some of the biggest mines such as Vale (33%), Rio Tinto (19%) and BHP (17%). If the merge between Rio Tinto and BHP goes through, the combined company will no doubt have the biggest market share of iron ore supply and Chinese importers will be in a very weak position to negotiate contract price. The steel companies are doing everything they can to resist the structual change on the other side and seek alternative supplies.

中国钢铁企业对Rio Tinto和BHP的购并案表示强烈不满，指出这是赤裸裸的垄断，给整个行业带来极端的不公平。从Rio Tinto和BHP两个公司在市场上的份额看，这样的指责也不为太过。毕竟世界上就这么三家大的供应商，两家并了，给钢厂留下的空间已经越来越小了。