S Korea Steelmakers Opposed To Rio-BHP JV - Steel Association
June 10 2009 - 5:16AM
Dow Jones News
Posco (005490.SE) and other South Korean steelmakers are opposed
to the proposed iron ore joint venture announced last week by
miners Rio Tinto PLC (RTP) and BHP Billiton Ltd. (BHP), the Korea
Iron & Steel Association said Wednesday.
"The joint venture may bring forth aggravated oligopoly in the
iron ore market though the two miners say they will independently
manage marketing and sales functions," the association said in a
statement.
Posco Chief Executive Chung Joon-yang, at an annual steel
industry event Tuesday, said the BHP-Rio joint venture wasn't
positive for the steel industry.
His remarks followed a statement yesterday by the China Iron and
Steel Association, which said it strongly opposed the joint
venture.
"The joint venture agreement goes in the direction of a
monopoly," the association said in a statement on its Web site.
-By Kyong-Ae Choi, Dow Jones Newswires; 822-2198-2236;
kyong-ae.choi@dowjones.com