As the largest consumer of iron ore and steel producer, China accounted for 35% of global iron ore imports and over 25% of world steel output. Two-thirds of the iron ore market was dominated by just three companies - the Australian-owned BHP Billiton ore (BHPBIO or BHP), Rio Tinto Hamersley Iron Unit (RTHI Brazil), owned by Companhia Vale do Rio Doce SA (CVRD). In February 2005, following a deal between CVRD and Nippon Steel, the price of iron ore increased by 71.5%. The deal, along with the advantage of cheaper freight advantages for Australian iron ore, BHP has to apply for an additional charge of Chinese companies. Chinese manufacturers are strongly opposed to this demand, and in April 2005 a proposed price increase was excluded for the sake of future trade relations with China. However, BHP still interested in its implementation in the future. "Hide
by Carola Ramon-Berjano, Zhigang Tao, Ivan Png Source: University of Hong Kong, 21 pages. Publication Date: December 12, 2006. Prod. #: HKU628-PDF-ENG
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