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China calls for AD probe on iron ore exports from Brazil and Australia

Tuesday, 26 July 2016 23:31:44 (GMT+3)   |   Sao Paulo
       
Chinese miners are demanding an AD investigation over the imports of iron ore from Brazil and Australia, the world’s top providers for the commodity, a media report said this week.

Citing a statement from the Metallurgical Miners' Association of China Reuters said more than 20 Chinese miners called for tougher measures for the imported commodity coming from Brazil and Australia.

The association said “a huge volume” of low-priced imported iron ore has severely impacted the domestic mining industry and represents a “big challenge” for the security of the local steel production.

According to the local Chinese association, capacity from major producers has continued to increase and requires “a massive Chinese market to absorb their great excess.”

Imports have accounted for some 85 percent of China’s total iron ore consumption, leading domestic miners in China to shutdown or diminish capacity utilization.

The association also accused Vale, Rio Tinto and BHP Billiton for dominating the global iron ore trade defying and expanding the market, “despite prices being low, since their strategy is to use low-priced dumping to crowd out higher-cost miners.”

Brazil iron ore producer Vale said it may produce less iron ore in 2017, as it favors margins instead of volumes.

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