China threatens iron ore again

Via The Australian:

China has warned Australia that excessive anti-dumping complaints by BlueScope Steel threaten our industry and crucial iron ore exports.

…In its submission, the Chinese government said: “China would also like to remind Australia that taking trade remedy measures for similar products intensively may raise the price of relevant products, which will cause the cost increasing in the relevant downstream industries.

“Under the situation of the COVID-19 epidemic and the economic downturn, the rising cost may cause difficulties in operation of downstream industries,” it added.

“China would also like to draw Australia’s attention that Australia, as the main exporter of iron ore, and China, as the most important steel producer in the world, have established close cooperative relations in iron ore – steel products industry chain,” it said.

“Intensive investigation to China’s steel products will also hurt the interests of Australian mining enterprises,” the submission said.

“If China‘s steel enterprises reduce their iron ore imports due to the impact of trade remedy, it is likely to damage the interests of Australian iron ore producers,” it added.

“We would encourage Australia to face up to the characteristics of the industrial structure of and in-depth co-operation between China and Australia and consider the adverse effects for trade remedy investigation on the industrial chain, thus avoids the excessive use of trade remedies which may cause losses to the enterprises of China and Australia,” the submission said.

Yawn. Ignore.

David Llewellyn-Smith
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  1. adelaide_economistMEMBER

    Unusually polite of the Chinese given the bellicose nature of most of their recent commentary directed at Australia.

    • they are learning. Only US will be left to openly threaten other countries and bomb them if they don’t fall in line. China is learning how damaging can be to use harsh language – plenty to lose and nothing to gain, especially if they don’t plan to follow through on the threat.
      And if they don’t change the way they do things at home there is nothing China can do in regards to IO. But watch out if they decide to stop building empty apartments – it will be our IO exports that will be reduced not Brasil’s.
      Then again, Brasil will find a way to let us selling 100% of everything we dig.

      • I doubt China is learning.

        They just need iron ore for y’know, aircraft carriers

  2. Is there another market for our iron ore? What would happen if China told RIO for example they were only gonna pay 80 usd a tonne ?

    • RIO will ask if they can lock the price for 2 years.

      China depends on our IO for now. If they decide to change their growth strategy they may not.

    • Boaty McBoatface

      Totally agree. We should either put up or shut up. We can either nationalize the iron ore miners, and make the steel here for sale around the world. or accept that we will just sell iron ore to China and they do the value add.

      This scenario where we sell them iron ore then complain they are dumping their steel here is just disingenuous.

    • kannigetMEMBER

      Heaven forbid we put all the newly unemployed to work producing steel for ourselves and selling the end product?

      • lol.. can’t have that. All our buildings will last for over 100 years. Idea is to sell 2 bedder for $1.5m in a building that will not stand in 5 years time due to faulty products.. from Chyna. Then get the gov to bailout the developer, the builder and the speculator and rebuild the same place with taxpayer money.. with faulty products from Chyna and then..

    • Atm there is no replacement for any of the Australian IO majors (RIO, BHP, FMG). None of them have the capacity to replace lost tonnage from the other.

  3. “…….China, as the most important steel producer in the world…….”

    FMD they still don’t know what steel is – it’s still patchy regarding hard spots, delaminations & being short on Vanadium etc – IE still Chubadou Plasticine! Maybe SELF important might be a better fit.

  4. Yeah how super that we continue to eagerly sell iron ore to a country so they can build weapons with it to threaten us in the coming war.

  5. Can't Socially Distance

    If China want to hurt us they should slap a 25% tariff paid by us on everything exported to Australia