Fortescue Metals Group has hit back at critics of chairman Andrew Forrest’s controversial call for an effective iron ore production cartel to address collapsing prices, accusing the company’s rivals of exacerbating industry cycles and causing a “massive” transfer of wealth out of the country.
FMG chief executive Neville Power staunchly defended comments by his chairman in Shanghai earlier this week. “If you look at our industry, the current iron ore price is not good for anyone,” he said.
Chinese steel giant Baosteel, which was Fortescue’s first customer, joined the growing condemnation, saying Mr Forrest’s call for a cap on iron ore output to revive prices was “not good for fair competition”
“Companies should follow the laws of the market,” Baosteel chief financial officer Zhu Kebing was yesterday quoted by Reuters.
In response the FMG chief said they would much prefer consistency and stability in prices rather than wild swings.
A lot of customers, he said, wanted to return to the old mechanism of benchmark pricing, where prices were set as a result of annual negotiations between producers and customers.
“I think spot pricing is better because it promotes the right signals back into the market and creates transparency,” Mr Power said.
Full Content: The Australian Business Review
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
FCC Votes to Restore Net Neutrality Rules
Apr 25, 2024 by
nhoch@pymnts.com
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI