China Group Urges Dumping Probe on Australia, Brazil Iron Oreby
China’s top iron-ore miners called on the country’s trade regulator to start an anti-dumping investigation into “massive and cheap” imports from Australia and Brazil, saying the shipments were challenging domestic producers and threatening resource security.
The Metallurgical Mines’ Association of China, representing more than 20 miners, asked the Ministry of Commerce to start the probe as soon as possible, according to a statement on the group’s website dated July 25, without identifying any companies. Large overseas miners will probably boost sales to China at low prices as they need the country to absorb their glut, it said.
While iron ore prices have climbed 30 percent in 2016, they slumped for the previous three years and reached the lowest level late last year since at least 2009 as global supplies increased and demand in China slowed.
The price of iron ore imported by China is “obviously” lower than the output costs of domestic miners, which has led to losses and closures, the companies said in the statement. Utilization rates at Chinese mines are below 65 percent and almost 85 percent of supplies in China are from overseas, they said.