Bloomberg reported that steelmakers in China and South Korea will meet today in Beijing to discuss rising raw material prices. Government officials will attend the regular meeting.
South Korea’s Ministry of Knowledge Economy said in an e mailed statement that steel mills including POSCO and BaoSteel Co share the view that sharp gains in the prices of iron ore and coal may lead to higher production costs of cars, ships and appliances,
It said that “The steelmakers are concerned about a proposed iron ore venture between BHP Billiton Ltd. and Rio Tinto Group because the move may hurt competition.”
It added that the change this year to pricing iron ore and coal on quarterly contracts from annual terms also has the mills concerned.