Fortescue chairman lends weight to call for iron ore supply inquiry

|By:, SA News Editor

Fortescue Metals (OTCQX:FSUMF) Chairman Andrew Forrest lends his weight to a renewed call for an inquiry into iron ore exports from Australia, arguing oversupply is hurting competition.

His comments follow remarks from Cliffs Natural Resources (CLF -2.5%) that it too wants a government inquiry, as its biggest rivals in Australia have a strategy to crush the competition.

Australia’s government last May rejected calls by Fortescue and an independent lawmaker to investigate the iron ore market.

BHP Billiton (BHP +0.3%) and Rio Tinto (RIO -0.9%) have defended their strategy of expanding low-cost output and reject the idea of an inquiry, warning that it risked undermining Australia’s commitment to free trade and open markets.

Meanwhile, ore with 62% content fell 8.8% to $58.02/metric ton today, eroding some of Monday’s record surge.

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