Australian miners not to blame for China’s soaring iron ore prices, observers say China imports about 60 per cent of its iron ore from Australia. Photo: AFP
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 assessment comes after China s top steel mills, including China Baowu Steel Group, and the China Iron & Steel Association (CISA) met on Thursday to investigate soaring prices possibly caused by market manipulation that threatened to erode profitability and derail the steel production supply chain. 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.