Australian mines won't wait for the conclusion of Sino-Australian iron ore negotiations, and are hurrying to vend their spot ore on the Chinese market.
"We will launch joint investigations with other departments and take sanctions against any party who disrupts normal market order in iron ore trading", an official with China Iron and Steel Association (ISA) yesterday responded to Shanghai Securities News regarding an agency report on June 18.
Negotiations between China and the 'three giants' – BHP, Rio Tinto and Vale – are as yet incomplete, and the Australian companies' activities in the spot market therefore cast a suspicion of lack of sincerity on the part of the giants. The official went on to point out that the Australian iron companies' speculative moves have also disrupted the Chinese import market, while causing a rise in sea freight charges. "Those Chinese steel dealers found violating market regulations will be subject to severe sanctions, including being disqualified from involvement in the import business."
As sources reveal, ISA field investigations have been conducted in major Chinese ports, and the association will shortly publish its findings along with the consequences for any who have breached the government's regulations.
For more information, please consult the coverage in Chinese at:
http://paper.cnstock.com/html/2009-06/22/content_71003529.htm
(China.org.cn by Maverick Chen, June 22, 2009)
