Be wary of pricing power of BHP-Rio venture

Eurofer, the European steel industry’s representative body, yesterday added its voice....

Eurofer, the European steel industry’s representative body, yesterday added its voice to the call for closer scrutiny of the BHP Billiton, Rio Tinto iron ore joint venture, warning that the new company might have an impact on steel prices. The European steel industry restates its "strong reservations" against the joint venture of the iron ore companies BHP Billiton and Rio Tinto, which now has been signed by the two mining giants, Eurofer said in a statement."The joint venture which has been agreed by BHP Billiton and Rio Tinto will combine their production and infrastructure facilities and will unavoidably lead to market concentration and an increase in pricing power of the combined company which is unacceptable in competition terms," said Eurofer director general Gordon Moffat.