EUROFER and ORGALIME condemn iron ore miners’ massive hike bids

"If economic access to iron ore is hampered through unjustifiable pricing and consequently steel production in Europe is jeopardized, this would have severe consequences for the whole value chain and millions of jobs in the sectors concerned," reads a statement released jointly by the European Confederation of Iron and Steel Industries (EUROFER) and the European Engineering Industries Association (ORGALIME) on March 30.
 
In the statement, EUROFER and ORGALIME state that they condemn the attempts of the iron ore companies to increase iron ore prices by 80 percent or more, reiterating their opposition to the significant pricing power of three mining companies over  the seaborne iron ore market, the proposed JV between BHP and Rio Tinto, high profit margins of iron ore producers, the current proposals of further massive price increases which are not based on any demand fundamentals amidst continuing adverse effects of global depression.
 
Thus the two organizations urged fair conditions on prices and respect for current contract conditions, an immediate intervention by European governments and authorities to tackle competition distortions in raw material markets and to prevent speculation on raw materials in order to support the long-term future of the industrial value chain in Europe, and finally called on the European Commission and the German federal cartel office as competent competition regulators to continue examining thoroughly the proposal by BHP Billiton and Rio Tinto to create a joint venture.