5 tonne found April 21 by The Steel Index

The conflict between the steel producers of iron ore is far from over. "I have good reason to believe that the European Commission looking at very closely what is behind the iron ore price increases," said yesterday at the "Echos" Gordon Moffat, the pattern of Eurofer, the powerful association of European steelmakers. "We have received several complaints from EUROFER, but not only, and we're currently consider them", confirms to Directorate General for competition of the European Commission. Before adding: "there is no formal inquiry for the moment, is still at the stage of the statement.

The steel of the old Continent continue to rebel against what they describe as a "scandal of the oligopolistic structure" the essential raw materials of steel prices. This year, they have imposed their customers around the world annual commercial contracts to contracts expire quarterly, whose prices are much more closely than earlier levels found in the cash markets. The Director General of Euroferentend seize Brussels a second time in two months for deciding sanctions against the trio of giant ore of iron, Vale, Rio Tinto and BHP Billiton. These three groups selling their products in Europe, the Commission is competent to examine their activities. "Even if their assets are out of the old Continent, the actions of these three groups are listed in Europe: Vale on the Paris Stock Exchange; Rio Tinto and BHP Billiton in London, said Gordon Moffat. Let us not forget that Brussels did bend Microsoft, an American company.

Confusion in the marketplace

This raises once again the anger of the representative of Eurofer, it is the desire of Vale, the world number one of this raw material, to obtain a new increase of 35 of the price of iron ore that will be delivered between July and September. What set to about 180 dollars per tonne price franco on Board (FOB) of iron ore. Experts had expected instead at a price of the order of 165 dollars per tonne. If the information provided by the daily newspaper "O estado de são paulo" has not commented on by the Brazilian society, Eurofer believes the "accurate." The Organization of the steel industry considers that this requirement on the part of producers of iron ore is "completely unjustified".

"Demand is not sufficient in China for the legitimate." "In addition, the global economic recovery slows", says Gordon Moffat. It is true that Chinese demand for iron ore appears to be less "bubbling" lately if judged by the current spot price of the fine with a 62 iron content marketed on the Chinese ports. At 145 dollars per tonne on average, the price fell by over 22 from its recent high of $ 186.5 tonne found April 21 by The Steel Index. The Agency of the European steel producers said that in contrast to what happened in the first quarter, a new increase of iron ore can be resolved by its members through hedging strategies.

Like those of Macquarie Bank, many experts consider that the new contract system has increased the confusion on the market of this ore. Other stigmatize the excessive dependence of the new contract prices in the spot market. A growing market: between 30 and 40 of international trade of iron ore is now in cash. However, this reality is very different from one area to another. The rise of Chinese spot market does not doubt following the decision of the steel producers of that country does not accept the conditions of their suppliers. In contrast, in Europe or in India, two major regions of steel production, the market spot iron ore is "minuscule", stigmatizes Gordon Moffat. What makes even less justified the inflation of this material first to his eyes.