China-Australia relations: Australian miners not to blame for soaring iron ore prices, observers say
- China Iron & Steel Association says ‘market pricing mechanism has failed’ after commodity price hits record US$158 per tonne on Thursday
- ‘Prices have soared in recent weeks in response to a significant fall in iron ore arrivals at Chinese ports,’ commodities analyst says
Australian miners should not be blamed for galloping iron ore prices that were likely caused by excessive “hot money” speculating on iron ore derivatives, analysts say.
The iron ore market pricing mechanism has failed
“The iron ore market pricing mechanism has failed and steel companies unanimously call on the State Administration for Market Supervision and the China Securities Regulatory Commission to take effective measures … and crack down on possible violations of regulations,” CISA said in a statement.
BHP confirmed its production remained strong and there had been few weather interruptions to its operations.
Atilla Widnell, managing director of commodities analyst Navigate Commodities said there had been market concerns over slowing shipments of iron ore in China, which were worsened by Rio Tinto’s potential slowdown in production after blowing up an Australian aboriginal cave.
