The China Iron and Steel Association (CISA) has called on the country's steel companies and traders with iron ore import licenses to stop buying the resource in the coming two months from iron ore giants Brazil-based Vale, Australia's BHP Billiton and Anglo-Australian miner Rio Tinto, the Chinese press reports.
The initiative is intended to protest against the three companies' demand for huge price hikes for iron ore.
Chinese iron ore inventory of 75 million mt is currently sufficient to meet the steel mills' needs for two months.
According to the Australian press, the country's federal trade minister Simon Crean has criticized the call, saying, "You've got to let the market determine the price. You can't be issuing directives in terms of restricting supply."
As SteelOrbis previously reported, Chinese Ministry of Commerce spokesman Yao Jian said on March 16 that China's interests should be reflected in the ongoing iron ore price negotiations, while also stressing his country's intention to stick with the long-term iron ore price agreement mechanism.
The Chinese official's comments came one day after Australian minister Simon Crean said that neither Australia nor China should intervene in the iron ore talks between Chinese steelmakers and Australian miners.