March 15 (Bloomberg) -- The Australian government won’t interfere in iron ore price negotiations and China should act like a market economy, Trade Minister Simon Crean said.
“We won’t be getting involved,” Crean told reporters in Canberra today. “We recognize China’s market economy status, all we ask in return is it act in accordance with market principles and not seek to get the government involved.”
More than 10 of China’s largest steelmakers, including Baoshan Iron & Steel Co. and Wuhan Iron & Steel Co., have appealed for government help to represent them in negotiations with the world’s three major iron-ore suppliers, the China Securities Journal reported on March 13.
China failed to reach a price agreement last year with Rio Tinto Group, BHP Billiton Ltd. and Vale SA, the world’s three biggest iron ore suppliers, after they rejected its demand for a cut bigger than the 33 percent offered.