Tokyo | Australia’s miners are right to be worried about China’s attempts to rewrite the rules of the global iron ore trade. But they may be wrong if they think Beijing’s campaign can be dismissed as little more than a negotiating bluff.The battle between BHP, Rio Tinto, Fortescue and China Mineral Resources Group (CMRG) is often framed as a fight over pricing power. In reality, it’s an attempt by Beijing to shift the pain of its vast steel overcapacity onto foreign suppliers.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Why Australian miners are wary of China’s big squeeze on iron ore
The risk for BHP, Rio Tinto and Fortescue is not a sudden collapse in demand from Beijing. Rather, it’s a gradual erosion of their collective bargaining power.
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