BlueScope demands reduction in iron ore prices

BlueScope Steel called on one of its main suppliers of raw materials BHP Billiton to reduce its iron ore prices in the wake of the slide in world steel prices. Steel prices have fallen in recent months as booming steel production in China has led to global oversupply. However, iron ore prices are expected to rise to new high levels this year. BlueScope Managing Director and CEO Mr. Kirby Adams said “I don’t think there is anyone in the global steel industry that is happy with pricing for iron ore or coking coal.” Mr. Adams said prices for other raw materials such as scrap metal had begun to decline in line with the market conditions in the steel industry. “The scrap market is an open and transparent one, but the iron ore market is completely the opposite,” he said. “Steel prices have come off and it’s time for iron ore prices to come down.”