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BHP Responds to China’s Iron Ore Price Manipulation Accusations
Mar. 07, 2013 10:35AM PST
Base Metals Investing
Reuters reported that BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT) has responded to allegations from China’s National Development and Reform Commission that the top three iron ore miners — BHP, along with Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Vale (NYSE:VALE) — and some traders manipulated the markets to show a shortage of iron.
Reuters reported that BHP Billiton Ltd. (ASX:BHP,NYSE:BHP,LSE:BLT) has responded to allegations from China’s National Development and Reform Commission that the top three iron ore miners — BHP, along with Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Vale (NYSE:VALE) — and some traders manipulated the markets to show a shortage of iron.
As quoted in the market news:
BHP, the world’s third-largest iron ore miner, said it had produced iron ore at full capacity between July and December 2012 and sold all of that material.
“We aim to improve transparency by increasing liquidity in the spot market,” BHP said in a statement e-mailed to Reuters.
“We sell significant volumes on a spot basis, including through widely accessible trading platforms, irrespective of the iron ore price,” it said.
BHP was the first of the iron ore giants to issue a response to the statement from the NDRC, which came just as iron ore prices have eased off 16-month highs. Vale and Rio Tinto declined to comment.