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It is a turbulent time in the world of iron ore that shows no sign of easing as the tensions between BHP Billiton and Rio Tinto, and their key iron ore trading partner, seem to be on the rise.
Bloomberg reported this morning that Nippon Steel Corporation told journalists in Tokyo iron ore price talks with Rio Tinto had stalled because the miner was seeking "unaffordable" prices.
Rio also upset the Chinese steelmakers by allegedly failing to meet some of its long-term sales contracts while it diverts sales of iron ore into the more lucrative spot market.
This prompted the China Iron and Steel Corporation to call for a boycott of Rio's spot sales.
Rio has denied any allegations that it has failed to meet its contractual obligations.
And with the entrance of Fortescue Metals Group into the world's stage as the newest rival to BHP and Rio, things are looking no less tense.
The Australian newspaper reported today BHP's booking of 17 capesize vessels had forced FMG to pay significantly higher shipping rates to get its iron ore to China, quoting a price of $US44.50 per metric tonne, $10 higher than the going rate.
BHP said earlier in the week it needed the vessels to meet rising demand.
In China, the Iron and Steel Association has also called for steelmakers to control iron ore imports to strengthen its bargaining position with the Australian miners.
According to news reports, the association said figures indicating Chinese demand for iron ore had boomed in the first part of this year "gave a false impression"
The association also criticised importers who bought iron ore and then resold it on the spot market at higher prices, saying they could lose their import licences as their actions helped increase prices of the raw commodity.
Meanwhile, Indian iron ore producers say the ongoing fight between Rio and China will be a boon for their exports into the Chinese spot markets, despite domestic export restrictions.
India's Economic Times reported Indian companies were openly flouting export rules to sell iron ore at higher spot prices and capitalise on the demand.
Shares in Rio Tinto and BHP both reached record highs last week but have cooled off since - Rio was down $A1.86 to $148.19, while BHP was down 13c to $46.74.
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