Reuters reported that European steel industry body EUROFER will ask EU antitrust regulators to look into whether Vale is abusing its dominant position.
Mr Gordon Moffat director general of EUROFER told Reuters that EUROFER, whose members include ArcelorMittal and ThyssenKrupp, could file its complaint to the European Commission as soon as this week.
He added that "We will file a complaint against Vale for abuse of a dominant position. Our argument is not so much about price increases but the change in pricing terms and proposals for a change in annual pricing to spot markets. To unilaterally change terms in contracts without negotiations, this could be an abuse of a market position."
Mr Moffat said that EUROFER also plans to urge the European Commission this week to investigate the iron ore sector because of what the industry body calls unjustified price increases. EUROFER was considering taking that grievance over price rises to US regulators as well.
He added that "Our complaint could be made to the US Department of Justice. That is one option we are looking at. These price increases are dictated to us, they are not governed by any fundamentals. There is little competitive pressure. An investigation by the European Commission into the sector is justified."
EUROFER had said earlier this month a planned 80% to 90% increase in iron ore prices by the iron ore industry could hurt European economic recovery.